Note 5 — Reorganization

In the first quarter of 2016, the Company implemented a reduction in its workforce of approximately 2% of its employees across various geographies and functions. The Company recorded $1.0 million of severance and related costs for this action during the three months ended March 31, 2016 and expects to incur an additional $0.1 million during the three months ended June 30, 2016. All costs under this plan are expected to be paid during 2016.

In the first quarter of 2015, the Company implemented a reduction in its workforce of approximately 4% of its employees across various geographies and functions, in order to reallocate investment in 2015 to planned sales expansion and to delivery areas seeing the greatest client demand. The Company recorded $3.4 million of severance and related costs for this action during the three months ended March 31, 2015.

The following table rolls forward the activity in the reorganization accrual for the three months ended March 31, 2016 (in thousands):

	Workforce			Subsidiary			Products Group
	Reduction			Liquidation			Reorganization			Total
Accrual at December 31, 2015		41			7			433			481
Additions		1,011			-			4			1,015
Cash payments		(164	)		(7	)		(436	)		(607	)
Accrual at March 31, 2016	$	888		$	-		$	1		$	889