15. Restructuring Expenses

2014 Restructuring

On May 6, 2014, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 20% and reduce its overall cost structure by approximately $2.0 million per quarter. The restructuring plan resulted in special charges totaling $1.8 million recorded during the three month period ended June 30, 2014. These charges were for non-cash stock-based compensation expense of $1.3 million, severance costs for affected employees of $0.4 million, and other related costs of $0.1 million.

The restructuring plan was implemented primarily during the three month period ending June 30, 2014 and resulted in a negative cash impact of approximately $0.4 million in this period. Following is the activity in our restructuring liability account for the period ended June 30, 2014 (in thousands).


	December 31, 2013							June 30, 2014
	Balance		Provision-net		Usage			Balance
One-time employee termination benefits	$	—	$	1,741	$	(1,654	)	$	87
Fixed asset write-offs, transition travel, other		—		102		(9	)		93

Total	$	—	$	1,843	$	(1,663	)	$	180

2013 Restructuring

In July 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 has been implemented resulting in annualized savings of approximately $16.0 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 $3.3 million, severance costs for affected employees of $1.1 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.

During the three month period ended June 30, 2014, we updated our assumptions related to subleases of our facility consolidations and closures and took an additional restructuring charge of $0.6 million.

Following is the activity in our restructuring liability account for the period ended June 30, 2014 (in thousands).


	December 31, 2013								June 30, 2014
	Balance		Provision-net			Usage			Balance
One-time employee termination benefits	$	215	$	(194	)	$	(21	)	$	—
Lease/rental terminations		3,115		788			(658	)		3,245
Fixed asset write-offs, transition travel, other		38		3			(41	)		—

Total	$	3,368	$	597		$	(720	)	$	3,245

2012 Restructuring

We undertook a restructuring in the fiscal year 2012. Following is the activity in our restructuring liability account for the period ended June 30, 2014 (in thousands).


	December 31, 2013							June 30, 2014
	Balance		Provision-net			Usage		Balance
One-time employee termination benefits	$	4	$	(4	)	$	—	$	—

Total	$	4	$	(4	)	$	—	$	—

For all of these restructuring liabilities, those to be paid within 12 months are included in the accrued liabilities line item on the balance sheet and total $1.5 million. $1.9 million of restructuring is included in the deferred rent and other long-term liabilities line item on the balance sheet.