Wind-Down Expenses

6 Months Ended

Jun. 30, 2013

Restructuring And Related Activities [Abstract]

Note 6. Wind-Down Expenses

Rhode Island

In connection with our wind-down of our research and manufacturing operations in Lincoln, Rhode Island, and the relocation of our corporate headquarters and remaining research laboratories to California in October 1999, we provided a reserve for our exit cost obligation. The reserve was for the estimated costs of our former research and administrative facility in Lincoln, which we held on a lease that terminated on June 30, 2013. We periodically re-evaluated and adjusted the reserve after considering various factors such as our lease payments through to the end of the lease, operating expenses, the real estate market in Rhode Island, and estimated subtenant income based on actual and projected occupancy. The reserve was approximately $505,000 at March 31, 2013. In the second quarter of 2013, payments net of subtenant income of approximately $505,000 were recorded against this reserve and approximately $39,000 as additional wind-down expenses. We have closed this reserve as the lease and our obligations related to it terminated on June 30, 2013.

The summary of the changes to our wind-down reserve related to this facility for 2013 and 2012 were as follows:


	January 1 to March 31, 2013			April 1 to June 30, 2013			January 1 to June 30, 2013			January 1 to December 31, 2012
Accrued wind-down reserve at beginning of period	$	854,000		$	505,000		$	854,000		$	1,683,000
Less actual expenses recorded against estimated reserve during the period		(372,000	)		(505,000	)		(877,000	)		(1,185,000	)
Additional expense recorded to revise estimated reserve at period-end		23,000			—			23,000			356,000

Revised reserve at period-end		505,000			—			—			854,000
Add deferred rent at period-end		124,000			—			—			249,000

Total accrued wind-down expenses at period-end, current	$	629,000		$	—		$	—		$	1,103,000

- 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.

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