Severance and Other Charges

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

8. Severance and Other Charges

In July 2014, the Company’s management authorized the consolidation of the manufacturing of its Westcor division products, announcing its intent to transfer those operations from Westcor’s Sunnyvale, California facility to the Company’s primary manufacturing facility in Andover, Massachusetts, by the end of 2014. As a result, the Company recorded a pre-tax charge of $2,207,000 in the second half of 2014, primarily for the cost of severance and other employee-related costs involving cash payments based on each employee’s respective length of service. The Company also incurred other costs related to the relocation of the manufacturing operations, primarily freight costs, for the transfer of inventories and equipment, and employee travel expenses, of which approximately $303,000 was expensed in the second half of 2014. The related liability is presented as “Accrued severance charges” in the Condensed Consolidated Balance Sheets.

A summary of the activity related to the accrued severance charges, is as follows (in thousands):


Balance as of December 31, 2014	$	1,904
Payments		(591	)

Balance as of March 31, 2015		1,313
Payments		(571	)

Balance as of June 30, 2015		742
Payments		(408	)

Balance as of September 30, 2015	$	334