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Restructuring | 3 Months Ended
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Mar. 31, 2014
Restructuring And Related Activities [Abstract] |
Restructuring | 10. Restructuring In September 2013, the Company commenced certain restructuring initiatives including the closure of the Company’s development site in Calgary, Canada, and the consolidation of certain supply chain management activities. During February and March 2014, the Company commenced additional reduction in force initiatives resulting in headcount reductions of 41 employees and 21 employees, respectively. During the quarter ended March 31, 2014, the Company recorded restructuring charges of $1.2 million consisting primarily of employee-related compensation charges, as well as ongoing expenses related to vacating all or a portion of certain facilities in the United States and Canada during the fourth quarter of 2013. The restructuring charges for the three months ended March 31, 2014 consisted of $1.1 million in employee severance costs and $72,000 in facility exit related costs. Of the $1.2 million of restructuring charges for the three months ended March 31, 2014, $1.1 million relates to the Mobile Computing Products segment, and $42,000 relates to the M2M Products and Solutions segment. The restructuring charges incurred to date related to these restructuring initiatives total approximately $4.5 million, including restructuring charges recorded during the year ended December 31, 2013 of $3.3 million. Of the $4.5 million of restructuring charges recorded to date, $4.2 million relates to the Mobile Computing Products segment, and $248,000 relates to the M2M Products and Solutions segment. During the fourth quarter of 2013, as a result of the September 2013 restructuring initiatives, the Company exited its development site in Calgary, Canada, and a portion of its San Diego facility. The Company has not yet entered into sublease agreements for these facilities. The Company recorded an additional $72,000 in restructuring expense during the three months ended March 31, 2014 relating to exiting these facilities, which is included in operating expenses in the consolidated statement of operations. The Company accounts for facility exit costs in accordance with ASC 420 “Exit or Disposal Cost Obligations,” which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. The Company is required to estimate future sublease income and future net operating expenses of the facilities, among other expenses. The most significant of these estimates relate to the timing and extent of future sublease income which reduce lease obligations, and the probability for which the sublease income can be expected. The Company based estimates of sublease income, in part, on information from third party real estate experts, current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, and the location of the respective facility, among other factors. Further adjustments to the facility exit liability accrual will be required in future periods if actual exit costs or sublease income differ from amounts currently expected. Exit costs the Company records under these provisions are neither associated with, nor do they benefit, continuing activities. The following table sets forth activity in the restructuring liability for the three months ended March 31, 2014, which is primarily comprised of employee severance costs (in thousands):
|  | Employee Severance Costs |  |  | Facility Exit Related Costs |  |  | Total |
Balance at December 31, 2013 |  | $ | 0 |  |  | $ | 881 |  |  | $ | 881 |
Accruals |  |  | 1,094 |  |  |  | 72 |  |  |  | 1,166 |
Payments |  |  | (763 | ) |  |  | (243 | ) |  |  | (1,006 | )
Balance at March 31, 2014 |  | $ | 331 |  |  | $ | 710 |  |  | $ | 1,041 |
The balance of the restructuring liability at March 31, 2014 consists of $775,000 in short-term and $266,000 in long-term. The balance of the restructuring liability at March 31, 2014 is anticipated to be fully distributed by the end of the third quarter of 2017, at the expiration of our facility lease in Canada. We do not expect to incur significant additional expenses related to the September 2013 restructuring initiatives.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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