Quarterly report pursuant to Section 13 or 15(d)

Restructuring

v3.5.0.2
Restructuring
6 Months Ended
Jun. 30, 2016
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 ObligationsASC 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 “Restructuring Plan”). During 2014, in conjunction with the Restructuring Plan, the Company committed to a reduction in force. As of September 23, 2014, the Company communicated the reduction to affected employees. The Company completed the implementation of its Restructuring Plan before the end of 2015.

The Company incurred a total of $4.7 million of restructuring charges in connection with the Restructuring Plan, including:

(1)
$2.7 million total expenses relating to employee termination benefits, which primarily included severance and transitional-related expenses.

(2)
In connection with the closure of its German operations pursuant to the Restructuring 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 Restructuring Plan.

(3)
$1.6 million of legal and professional fees associated with the execution of the Restructuring Plan.

The following table summarizes the charges recorded related to the Restructuring Plan by type of activity (in thousands):

 
Six Months Ended 
 June 30,
 
2016
 
2015
Termination benefits
$

 
$
238

Leases and other contractual obligations

 
64

Other

 

Total Restructuring charges
$

 
$
302


The following table summarizes the charges and spending relating to the restructuring plan for the year ended December 31, 2015 (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
$

 
$

 
$

 
$