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 (the “2013 Initiatives”). The 2013 Initiatives are expected to cost a total of approximately $6.6 million and be completed when the facility leases expire in December 2016.

In August 2015, the Company approved a restructuring initiative to better position the Company to operate in current market conditions and more closely align operating expenses with revenues, which included employee severance costs and facility exit related costs. In the fourth quarter of 2015, the Company commenced certain initiatives relating to the reorganization of executive level management, which included, among other actions, the replacement of the former Chief Executive Officer (collectively, the “2015 Initiatives”). The Company continued these initiatives in 2016 with a reduction-in-force and the completion of the closure of its facility in Richardson, TX. The 2015 Initiatives are expected to cost a total of approximately $4.6 million and be completed when the Richardson, TX lease expires in June 2020.

In April 2016, the Company commenced certain restructuring initiatives to consolidate the operations of Ctrack with those of the Company, including the closure of the Company’s manufacturing operations in Durban, South Africa resulting in a reduction-in-force.

In July 2016, subsequent to the balance sheet date, the Company commenced certain restructuring initiatives intended to improve its strategic focus on its most profitable business lines while de-prioritizing certain hardware-only product lines to non-carrier customers, including a reduction-in-force (collectively with the Durban facility closure, the “2016 Initiatives”). The 2016 Initiatives are expected to cost a total of approximately $0.7 million and be completed in September 2016.

The following table sets forth activity in the restructuring liability for the six months ended June 30, 2016 (in thousands):



	Balance at December 31, 2015		Costs Incurred		Payments			Non-cash		Translation Adjustment		Balance at June 30, 2016		Cumulative Costs Incurred to Date
2013 Initiatives
Employee Severance Costs	$	—	$	—	$	—		$	—	$	—	$	—	$	3,986
Facility Exit Related Costs	72		4		(39		)	—		—		37		2,629

2015 Initiatives
Employee Severance Costs	1,330		538		(1,083		)	—		14		799		4,129
Facility Exit Related Costs	328		122		(164		)	159		—		445		503

2016 Initiatives
Employee Severance Costs	—		227		(227		)	—		—		—		227
Total	$	1,730	$	891	$	(1,513	)	$	159	$	14	$	1,281	$	11,474

The balance of the restructuring liability at June 30, 2016 consists of approximately $0.9 million in current liabilities and $0.4 million in long-term liabilities.