Quarterly report pursuant to Section 13 or 15(d)

Restructuring

v3.3.0.814
Restructuring
 9 Months Ended
Sep. 30, 2015
Restructuring and Related Activities [Abstract]  
Restructuring
Restructuring

The Company records the cost reduction plan activities in accordance with the Accounting Standards Codification (ASC), including ASC 420 Exit or Disposal Cost Obligations, ASC 712 Compensation-Nonretirement Postemployment Benefits and ASC 360 Property, Plant, and Equipment (Impairment or Disposal of Long-Lived Assets).

During the third quarter ended September 30, 2014, the Company implemented a plan to improve operational efficiencies, which included the closure of its German-based operations and facilities, centralization of its international financial operations, and realignment of its international and U.S. tax structure (the “Plan”). During 2014, in conjunction with the Plan, the Company committed to a reduction in force. As of September 23, 2014, the Company communicated the reduction to affected employees. The Company substantially completed the implementation of its Plan by the end of the third quarter of 2015.

The Company estimated that $4.7 million to $5.2 million of restructuring charges would be incurred in connection with the Plan, including:

(1)
The Company estimated that it would incur total expenses relating to employee termination benefits, which primarily include severance and transitional-related expenses, of approximately $2.7 million, all of which represents cash expenditures which were incurred and expensed through September 30, 2015.

(2)
In connection with the closure of its German operations pursuant to the Plan, the Company disposed of approximately 11,000 square feet of leased facilities in Duisburg and Munich, Germany, representing approximately 6% of its global facilities square footage. The Company incurred an aggregate of approximately $0.4 million of facilities disposal charges pursuant to the Plan through September 30, 2015.

(3)
From the third quarter of 2014 through the third quarter of 2015, the Company anticipated incurring periodic restructuring expenditures in an aggregate amount of $1.5 to $2.0 million, comprised of legal and professional fees associated with the execution of the Plan. Through September 30, 2015, the Company incurred and expensed approximately $1.5 million in professional fees in connection with the Plan.

The following table summarizes the charges recorded during the nine months ended September 30, 2015 related to the Plan by type of activity (in thousands):
 
 
Termination benefits
 
Leases and other contractual obligations
 
Other
 
Total
 
 
 
 
 
 
 
 
 
Restructuring charges
 
$
238

 
$
64

 
$
66

 
$
368

Total Restructuring charges
 
$
238

 
$
64

 
$
66

 
$
368


The following table summarizes the charges and spending relating to the Plan since inception (in thousands):
 
 
Termination benefits
 
Leases and other contractual obligations
 
Other
 
Total
 
 
 
 
 
 
 
 
 
Expense
 
$
2,727

 
$
386

 
$
1,478

 
$
4,591

Payments
 
(2,727
)
 
(386
)
 
(1,478
)
 
(4,591
)
Restructuring reserves as of September 30,2015
 
$
—

 
$
—

 
$
—

 
$
—