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Restructuring | 6 Months Ended
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Jun. 30, 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, and during June 2014 a further headcount reduction of 5 employees at its Calgary, Canada site. During the three months ended June 30, 2014, the Company recorded restructuring charges related to these restructuring initiatives of $1.6 million, which consisted of $620,000 in employee severance costs and $932,000 in facility exit related costs resulting from a reevaluation of its expected sublet dates and rates as further described below. During the six months ended June 30, 2014, the Company recorded restructuring charges related to these restructuring initiatives of $2.7 million, which consisted of $1.7 million in employee severance costs and $1.0 million in facility exit related costs related to ongoing assessment of estimates of the timing and amounts of sublease income. All of the $1.6 million of restructuring charges for the three months ended June 30, 2014 related to the Mobile Computing Products segment. Of the $2.7 million of restructuring charges for the six months ended June 30, 2014, $2.7 million related to the Mobile Computing Products segment, and $42,000 related to the M2M Products and Solutions segment. Total restructuring charges incurred to date related to the September 2013 restructuring initiatives discussed above, are approximately $6.0 million, including restructuring charges recorded during the year ended December 31, 2013 of $3.3 million. Of the $6.0 million of restructuring charges, $5.8 million related to the Mobile Computing Products segment, and $248,000 related to the M2M Products and Solutions segment. The Company accounts for facility exit costs in accordance with FASB Accounting Standards Codification 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 that such sublease income will be realized. 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. In June 2014, the Company commenced certain restructuring initiatives relating to the reorganization of executive level management, which included the termination and replacement of then Chief Executive Officer, Peter Leparulo, with current Interim Chief Executive Officer, Alex Mashinsky. In connection with the termination of the Company’s former Chief Executive Officer, the Company recorded estimated charges of $3.7 million based on the contractual requirements of Mr. Leparulo’s employment agreement. The provisions of his agreement included of $2.4 million in cash payments and approximately $1.3 million related to the accelerated vesting of all restricted stock units and options which vested immediately upon his termination. Of the $3.7 million of restructuring charges for the termination of Mr. Leparulo, $2.2 million related to the Mobile Computing Products segment, and $1.5 million related to the M2M Products and Solutions segment. The following table sets forth activity in the restructuring liability for the six months ended June 30, 2014, which is primarily comprised of employee severance costs (in thousands):
|  | Employee Severance Costs |  |  | Facility Exit Related Costs |  |  | CEO Termination Employment Contract Costs |  |  | CEO Termination Share-based Compensation Costs |  |  | Total |
Balance at December 31, 2013 |  | $ | 0 |  |  | $ | 881 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 881 |
Accruals |  |  | 1,714 |  |  |  | 1,004 |  |  |  | 2,400 |  |  |  | 1,298 |  |  |  | 6,416 |
Payments |  |  | (1,146 | ) |  |  | (494 | ) |  |  | (22 | ) |  |  | 0 |  |  |  | (1,662 | )
Stock-based compensation |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,298 | ) |  |  | (1,298 | )
Balance at June 30, 2014 |  | $ | 568 |  |  | $ | 1,391 |  |  | $ | 2,378 |  |  | $ | 0 |  |  | $ | 4,337 |
The balance of the restructuring liability at June 30, 2014 consists of $3.9 million in current liabilities and $482,000 in non-current liabilities. The balance of the restructuring liability at June 30, 2014 is anticipated to be fully distributed by the end of the third quarter of 2017, at the expiration of the Company’s facility lease in Canada.

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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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