Anuvu Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Restructuring

Restructuring

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

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 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 December 31, 2015.

(2)

In connection with the closure of its German operations pursuant to the Plan, the Company disposed of approximately 11000 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 December 31, 2015.

(3)

From the third quarter of 2014 through the fourth quarter of 2015, the Company anticipated to incur periodic restructuring expenditures in an aggregate amount of $1.5 million to $2.0 million, comprised of legal and professional fees associated with the execution of the Plan. Through December 31, 2015, the Company incurred and expensed approximately $1.5 million in legal and professional fees in connection with the Plan.

The following table summarizes the charges recorded during the year ended December 31, 2015 related to the restructuring plan by type of activity (in thousands):



	Termination benefits		Leases and other contractual obligations		Other		Total

Restructuring charges	$	238	$	107	$	66	$	411
Total Restructuring charges	$	238	$	107	$	66	$	411

The following table summarizes the charges and spending relating to the restructuring plan (in thousands):



	Termination Costs			Leases and other contractual obligations			Other			Total
Restructuring reserves as of January 1, 2015	$	809		$	39		$	1,076		$	1,924

Expense	238			107			66			411
Payments	(1,047		)	(146		)	(1,142		)	(2,335		)
Restructuring reserves as of December 31, 2015	$	—		$	—		$	—		$	—