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 cost a total of approximately $6.6 million and were completed 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 $5.0 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, 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 cost a total of approximately $1.0 million and were completed in December 2016.

The following table sets forth activity in the restructuring liability for the year ended December 31, 2016 (in thousands):



	Balance at December 31, 2015		Costs Incurred		Payments			Non-cash		Translation Adjustment		Balance at December 31, 2016		Cumulative Costs Incurred to Date
2013 Initiatives
Employee Severance Costs	$	—	$	—	$	—		$	—	$	—	$	—	$	3,986
Facility Exit Related Costs	72		5		(77		)	—		—		—		2,630

2015 Initiatives
Employee Severance Costs	1,330		539		(1,428		)	—		14		455		4,130
Facility Exit Related Costs	328		485		(384		)	159		—		588		866

2016 Initiatives
Employee Severance Costs	—		958		(958		)	—		—		—		958
Total	$	1,730	$	1,987	$	(2,847	)	$	159	$	14	$	1,043	$	12,570

The balance of the restructuring liability at December 31, 2016 consists of approximately $0.8 million included in accrued expenses and other current liabilities in the consolidated balance sheet and approximately $0.2 million included in long-term liabilities in the consolidated balance sheet.

In the fourth quarter of 2016, the Company wrote down the value of certain inventory by approximately $11.5 million related to the abandonment of certain Enfora product lines that management decided to exit. The Company accounted for the adjustment in accordance with the ASC 330, Inventory, and included the adjustment in impairment of abandoned product line within cost of net revenues in the consolidated statements of operations.

In February 2017, subsequent to the balance sheet date, the Company commenced certain restructuring initiatives intended to continue to improve its strategic focus on its most profitable business lines and consolidate operations of its subsidiaries with those of the Company, including a reduction-in-force (the “2017 Initiative”). The 2017 Initiative is expected to cost a total of approximately $0.9 million and be completed in September 2017.