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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

3 Months Ended

Mar. 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 the three months ended March 31, 2015 and 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 anticipates that it will substantially complete the implementation of its Plan by the end of the second quarter of 2015.

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


(1)	The Company estimates that it will 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 March 31, 2015.

(2)

In connection with the closure of its German operations pursuant to the Plan, the Company expects disposals 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 March 31, 2015.

(3)

Beginning in the third quarter of 2014 through the first half of 2015, the Company anticipates 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 March 31, 2015, the Company has incurred and expensed approximately $1.4 million in professional fees in connection with the Plan.

The following table summarizes the charges recorded during the three months ended March 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	$	64	$	—	$	302
Total Restructuring charges	$	238	$	64	$	—	$	302

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



	Termination Costs			Leases and other contractual obligations			Other			Total

Expense	$	2,726		$	386		$	1,412		$	4,524
Payments	(2,726		)	(366		)	(810		)	(3,902		)
Restructuring reserves as of March 31,2015	$	—		$	20		$	602		$	622

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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