Annual report pursuant to Section 13 and 15(d)

Restructuring

v3.3.1.900
Restructuring
12 Months Ended
Dec. 31, 2015
Restructuring [Abstract]  
Restructuring

NOTE 13.  RESTRUCTURING

 

The Company initiated a restructuring plan in 2014 (the “2014 Restructuring Plan”) to realign resources within the organization and anticipates completing the plan in 2016.  During the years ended December 31, 2015 and 2014, we incurred $2,356 and $3,583, respectively, of restructuring charges related to the 2014 Restructuring Plan.  Restructuring charges of $700 were incurred during the year ended December 31, 2015, which related to the write-off of inventory that was distinguishable and directly attributable to the Company’s 2014 Restructuring Plan and not a result of external market factors associated with the ongoing business.  We have incurred $5,939 of cumulative restructuring charges since the commencement of the 2014 Restructuring Plan.  We estimate that we will incur restructuring costs related to employee-related costs and facility exit costs during the year 2016.

 

As part of the conclusion of the Company’s review of strategic alternatives, the Company initiated restructuring activities in efforts to further realign resources within the organization (the “2015 Restructuring Plan”) and anticipates completing the plan in 2016.  During the year ended December 31, 2015, we incurred $1,019 of restructuring charges related to the 2015 Restructuring Plan.  There were no costs incurred related to the 2015 Restructuring Plan during 2014.  We have incurred $1,019 of cumulative restructuring charges since the commencement of the 2015 Restructuring Plan.

 

The following table summarizes the restructuring charges, payments and the remaining accrual related to employee termination costs and facility costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014 Restructuring Plan

 

2015 Restructuring Plan

 

Total Restructuring

Balance at December 31, 2014

 

$

199 

 

$

 -

 

$

199 

Charges to expense:

 

 

 

 

 

 

 

 

 

Employee termination benefits

 

 

1,286 

 

 

944 

 

 

2,230 

Inventory write-off

 

 

700 

 

 

 -

 

 

700 

Other costs

 

 

370 

 

 

75 

 

 

445 

Total restructuring charges

 

 

2,356 

 

 

1,019 

 

 

3,375 

Cash payments and non-cash charges:

 

 

 

 

 

 

 

 

 

Cash payments

 

 

(1,693)

 

 

(559)

 

 

(2,252)

Inventory write-off

 

 

(700)

 

 

 -

 

 

(700)

Balance at December 31, 2015

 

$

162 

 

$

460 

 

$

622 

 

As of December 31, 2015, termination costs and restructuring costs remained in accrued liabilities and are expected to be paid throughout 2016.