Annual report pursuant to Section 13 and 15(d)

Restructuring

v3.8.0.1
Restructuring
 12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring
Restructuring

The Company records the cost reduction plan activities in accordance with the applicable 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 $4.6 million of restructuring charges since inception in connection with the Restructuring Plan, including:

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

(2)
$0.4 million of facilities disposal charges in connection with the closure of its German operation. Pursuant to the Restructuring Plan, the Company exited approximately 11,000 square feet of leased facilities in Duisburg and Munich, Germany, representing approximately 6% of its global facilities square footage.

(3)
$1.5 million of legal and professional fees.

The following table summarizes the charges recorded during the years ended December 31, 2015 and 2014 related to the restructuring plan by type of activity (in thousands), which are recorded in Restructuring Charges in the Consolidated Statements of Operations:

 
2015
 
2014
Termination benefits
$
238

 
$
2,489

Leases and other contractual obligations
107

 
322

Other
66

 
1,412

Total
$
411

 
$
4,223


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, 2014
$
—

 
$
—

 
$
—

 
$
—

Expense
2,489

 
322

 
1,412

 
4,223

Payments
(1,680
)
 
(283
)
 
(336
)
 
(2,299
)
Restructuring reserves as of December 31, 2014
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
$
—

 
$
—

 
$
—

 
$
—