Restructuring Charges

12 Months Ended

Dec. 31, 2012

Note 7---Restructuring

The facilities/excess assets accrual for each period includes future minimum lease payments, fees and expenses, net of estimated sublease income and planned Company occupancy, and related leasehold improvement amounts payable subsequent to the balance sheet date for which the provisions of ASC 420-10, as applicable, were satisfied. In determining estimated future sublease income, the following factors were considered, among others: current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, the status of negotiations with potential subtenants, and the location of the respective facilities.

The nature of the charges and credits in 2012 were as follows:

•

Facilities/excess assets – The net restructuring charge of $12,000 during year 2012 pertained to operating expenses paid in the period in excess of the initial estimated accrual for our vacant office space in Redwood City.

The nature of the charges and credits in 2011 were as follows:

•

Facilities/excess assets – During 2011 our net restructuring charge of $810,000 consisted of lease payments and operating expenses in the amount of $451,000 for our headquarters in Redwood City, a $202,000 charge for the re-evaluation of future sublease rental income on our vacant office space in Redwood City and a $157,000 charge for the estimated future operating expenses for our vacant office space in Redwood City. The remaining term of the lease for the vacant office space in Redwood City is less than one year, and because of the limited remaining lease term we have re-evaluated the likelihood of subleasing the vacant office space.

As of December 31, 2012, we have remaining lease obligations of approximately $1,908,000. As of December 31, 2012, we no longer have any restructuring accruals or any future payments related to restructuring accrual.

The following table summarizes the activity related to the restructuring plans and accounted for in accordance with ASC 420-10 (in thousands):


			Amounts
	Accrued		Charged to				Accrued
	Restructuring		Restructuring		Amounts		Restructuring
	Costs,		Costs and		Paid or		Costs,
	Beginning		Other		Written Off		Ending
Year Ended December 31, 2012:
Lease cancellations and commitments	$	450	$	12	$	(462)	$	-

Year Ended December 31, 2011:
Lease cancellations and commitments	$	534	$	810	$	(894)	$	450

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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