Restructuring Charges

9 Months Ended

Sep. 30, 2013

The 2012 Plan

During the third quarter of 2012, the Company initiated a restructuring program to reduce overall corporate expenses which is expected to improve future profitability by reducing spending on marketing, general and administrative programs and by refining some of the Company's research and development efforts (the “2012 Plan”). In connection with this restructuring program, the Company estimates that it will incur aggregate costs of approximately $6.0 million to $10.0 million. During the three months ended September 30, 2013, the Company reversed approximately $0.1 million of restructuring charges due to a change in estimate. During the nine months ended September 30, 2013, the Company incurred restructuring charges of $2.1 million related primarily to the consolidation of certain facilities and the reduction in workforce, of which a majority was related to corporate support functions. Since the inception of the program, the Company has incurred $9.4 million in restructuring related charges. The Company expects to substantially complete its restructuring activities related to this plan by the end of 2013. During the three and nine months ended September 30, 2012, the Company incurred restructuring charges of $6.6 million related primarily to the reduction in workforce, of which $4.0 million was related to the MID reportable segment and $2.6 million was related to corporate support functions.

The following table summarizes the 2012 Plan restructuring activities during the nine months ended September 30, 2013:



	Employee Severance and Related Benefits			Facilities				Total
	(In thousands)
Balance at December 31, 2012	$	906		$	—			$	906
Charges	136			1,960				2,096
Payments	(958		)	(1,307		)		(2,265		)
Non-cash settlements				(653		)	*	(653		)
Balance at September 30, 2013	$	84		—				$	84

*The non-cash charge of $653 thousand is related to the termination of the Company's financing obligation associated with abandoning a construction asset at one of its facilities.

The Q3 2013 Plan

During the three months ended September 30, 2013, the Company curtailed its immersive media platform spending and redirected some of its resources to other strategic programs (the “Q3 2013 Plan”). In connection with this restructuring program, the Company estimates that it will incur aggregate costs of approximately $1.0 million to $3.0 million. During the three and nine months ended September 30, 2013, the Company incurred restructuring charges of $1.2 million related primarily to the reduction in workforce, of which a majority was related to the CTO reportable segment. The Company expects to substantially complete its restructuring activities related to this plan by the end of 2014.

The following table summarizes the Q3 2013 Plan restructuring activities during the nine months ended September 30, 2013:



	Employee Severance and Related Benefits		Facilities		Total
	(In thousands)
Balance at December 31, 2012	$	—	$	—	$	—
Charges	1,239		—		1,239
Payments	—		—		—
Non-cash settlements	—		—		—
Balance at September 30, 2013	$	1,239	—		$	1,239

- 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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