Restructuring Expenses

9 Months Ended

Sep. 30, 2013

Restructuring And Related Activities [Abstract]

Restructuring Expenses

15.  Restructuring Expenses

2013 Restructuring

On July 25, 2013, the Board of Directors approved a plan of restructuring intended to bring the Company’s operating expenses better in line with revenues. The restructuring plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions of approximately 26% of the Company’s worldwide workforce. The restructuring plan was implemented primarily during the three month period ended September 30, 2013 and should result in annualized savings of approximately $14.0 million.

The restructuring plan resulted in special charges totaling $5.6 million recorded during the three month period ended September 30, 2013. These charges were for lease/rental terminations of $3.2 million, severance costs for affected employees of $1.2 million, equipment and improvements write-offs as a result of our lease/rental terminations of $1.0 million and other related costs of $0.2 million. All are cash expenditures except for the equipment and improvements write-offs. It is estimated that approximately $1.7 million of cash expenditures will be paid out in 2013, and the remaining cash expenditures will be paid in future years.

The $138,000 positive usage for lease/rental terminations was a result of reversing the deferred rent liability associated with the various lease terminations.

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 September 30, 2013 (in thousands):

	December 31, 2012				September 30, 2013
	Balance		Provision-net		Usage			Balance
One-time employee termination benefits	$	-	$	1,211	$	(647	)	$	564
Lease/rental terminations		-		3,201		138			3,339
Fixed asset write-offs, transition travel, other		-		1,190		(1,142	)		48
Total	$	-	$	5,602	$	(1,651	)	$	3,951

2012 Restructuring

In February 2012, we undertook a restructuring that included a 7% reduction of headcount and other cost reductions that resulted in annualized savings of approximately $7.0 million. One-time employee termination and other costs resulted in restructuring expenses of $0.2 million net recorded in the nine month period ended September 30, 2012.

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 September 30, 2013 (in thousands):

	December 31, 2012										September 30, 2013
	Balance		Provision-net		Usage			Reclass			Balance
One-time employee termination benefits	$	8	$	-	$	-		$	(4	)	$	4
Lease/rental terminations		-		-		-			-			-
Relocation, move, other expenses		-		-		(4	)		4			-
Total	$	8	$	-	$	(4	)	$	-		$	4

The remaining balance in the restructuring reserve is estimated to be used by the end of the fiscal year ending December 31, 2013.