Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

9 Months Ended

Sep. 30, 2016

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 “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):



	Nine Months Ended September 30,
	2016		2015
Termination benefits	$	—	$	238
Leases and other contractual obligations	—		64
Other	—		66
Total Restructuring charges	$	—	$	368

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			64			66			368
Payments	(1,047		)	(103		)	(1,142		)	(2,292		)
Restructuring reserves as of December 31, 2015	$	—		$	—		$	—		$	—