Restructuring Expenses

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

On February 15, 2017, the Company announced its plan to reduce its workforce by approximately 100 full-time employees and close the Company’s Nashville, Tennessee and Slovenia facilities. The plan is expected to be completed in fiscal year 2017. The estimated total cost for the plan is $4.9 million, which includes estimated employee severance cost of approximately $3.8 million, and facility-related costs of approximately $1.1 million.

During the six months ended June 30, 2017, the Company accrued $3.8 million of severance and related expenses, and paid out $3.1 million. The remaining unpaid balance of $0.7 million accrued severance and related expenses as of June 30, 2017 is presented as a component of accrued compensation in the Condensed Consolidated Balance Sheet.

There were $0.6 million of facility-related costs incurred during the six months ended June 30, 2017, of which $0.1 million was paid out. The remaining unpaid balance of $0.5 million accrued facilities-related expenses as of June 30, 2017 is presented as a component of accrued liabilities in the Condensed Consolidated Balance Sheet.

The following table summarizes the restructuring expense recorded in each reportable segment and income statement classification for the three months and six months ended June 30, 2017.

	Three months ended								Six months ended
	June 30, 2017								June 30, 2017
	Automation and Analytics		Medication Adherence		Corporate		Total		Automation and Analytics		Medication Adherence		Corporate		Total
	(in thousands)
Cost of revenue	$	—	$	—	$	—	$	—	$	1,266	$	431	$	—	$	1,697
Research and development	485		—		102		587		1,491		62		102		1,655
Selling, general and administrative	—		—		16		16		480		103		433		1,016
Restructuring and related expense	$	485	$	—	$	118	$	603	$	3,237	$	596	$	535	$	4,368

During the second quarter of 2016, the Company integrated its Sales and Field organizations in North America to better serve its customers which resulted in a reduction in headcount of 36 employees. Accordingly, the Company incurred approximately $1.7 million of restructuring expenses in the second quarter ending June 30, 2016, based on agreements with terminated employees covering salary and benefit continuation. As of June 30, 2016 the restructuring program has been concluded.