Note 11. Wind-down and exit costs

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 $854,000 at March 31, 2013. In 2013, payments net of subtenant income of approximately $916,000 were recorded against this reserve and approximately $62,000 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:

The components of our wind-down reserve at December 31 are as follows:


	2013			2012
Accrued wind-down reserve at beginning of period	$	854,000		$	1,683,000
Less actual expenses recorded against estimated reserve during the period		(916,000	)		(1,185,000	)
Additional expense recorded to revise estimated reserve		62,000			356,000

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

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