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Restructuring
6 Months Ended
Jun. 30, 2015
Restructuring

(6) Restructuring

In September 2014, the Company committed to a restructuring plan (the “2014 Restructuring Plan”) to streamline its workforce and spending to better align its cost structure with its business strategy, including reducing the Company’s workforce by 777 employees, comprised of 217 employees in North America, 400 employees in Asia Pacific, 141 employees in Europe, the Middle East, and Africa, and 19 employees in Latin America. As of December 31, 2014, the Company had implemented substantially all of the 2014 Restructuring Plan. The Company does not expect future costs associated with implementing the remainder of the 2014 Restructuring Plan, consisting primarily of the liquidation of certain foreign subsidiaries, to be material.

Costs associated with the 2014 Restructuring Plan included employee severance and related benefit costs (including outplacement services and continuing health insurance coverage), contract termination costs (including operating lease terminations for certain office space at the Company’s corporate headquarters and other international locations), and other charges (including external consulting and advisory fees related to implementing the restructuring plan). The following table summarizes the major types of costs associated with the 2014 Restructuring Plan (in thousands) for each of the three and six months ended June 30, 2015 and 2014, total costs incurred through June 30, 2015 and total costs expected to be incurred:

 

     Three Months Ended      Six Months Ended                
     June 30,      June 30,      Cumulative Costs      Total Expected  
     2015      2014      2015      2014      Incurred To Date      Plan Costs  

Severance and related employee benefits

   $ 0       $ 0       $ 0       $ 0       $ 13,162       $ 13,162   

Contract termination costs

     0         0         0         0         1,159         1,159   

Other costs

     90         0         175         0         586         711   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total restructuring costs

   $ 90       $ 0       $ 175       $ 0       $ 14,907       $ 15,032   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

The total restructuring costs above are reported as “Restructuring costs” under “Operating expenses” in the Company’s Consolidated Statements of Operations.

Restructuring-related liabilities are reported as “Accrued restructuring costs” in the Company’s Consolidated Balance Sheets. The following table presents a summary of changes in the restructuring-related liabilities (in thousands) for the six months ended June 30, 2015:

 

     Balance as of
January 1, 2015
     Costs
Incurred
     Cash
Payments
    Non-cash
Settlements
     Adjustments
and Other
    Balance as of
June 30, 2015
 

Current:

               

Severance and related employee benefits

   $ 2,215       $ 0       $ (1,697   $ 0       $ (286   $ 232   

Contract termination costs

     0         0         0        0         0        0   

Other costs

     69         175         (246     0         6        4   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current accrued restructuring costs

   $ 2,284       $ 175       $ (1,943   $ 0       $ (280   $ 236