Restructuring Expenses

6 Months Ended

Jun. 30, 2012

Restructuring Expenses [Abstract]

Restructuring Expenses

15. Restructuring Expenses

In October 2011, we announced a material Restructuring Plan that was approved by our Board of Directors resulting in charges of $2.2 million in the fourth quarter of fiscal year 2011. This Restructuring Plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions that will amount to approximately 20% of the Company’s worldwide workforce. The Restructuring Plan was implemented primarily during the fourth quarter of the Company’s 2011 fiscal year. Of the total charges, all but approximately $0.4 million will be cash expenditures.

In February 2012, we undertook an additional restructuring that included a further reduction of headcount of 7-8% and other cost reductions that will result in annualized savings of approximately $7.0M. One-time employee termination and other costs resulted in additional restructuring expenses of $0.3 million recorded in the period ended March 31, 2012. For the three month period ended June 30, 2012, we returned to profit $0.1 million of the restructuring reserve as a result of lower one-time employee termination benefits and relocation expenses.

The following is the activity in our restructuring liability account which is included in the accrued liabilities line item on the balance sheet for the period ended June 30, 2012 (in thousands):

	December 31, 2011							June 30, 2012
	Balance		Provision		Usage			Balance
One-time employee termination benefits	$	1,101	$	144	$	(1,152	)	$	93
Lease/rental terminations		448		14		(374	)		88
Relocation, move, other expenses		116		99		(215	)		—
Total	$	1,665	$	257	$	(1,741	)	$	181

The remaining balance in the restructuring reserve is estimated to be used during the fiscal quarter ending September 30, 2012.