Severance and Other Charges

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

7. Severance and Other Charges

Severance and other charges consist of the following (in thousands):

	Years Ended December 31,
	2013	2012
Employee severance expense	$ 596	$ 572
Lease exit costs	27	184
Asset impairment	-	133
Legal settlement	616	-
Total severance and other charges	$ 1,239	$ 889

Severance and Other Exit Costs

During 2012, the Company initiated actions to streamline both its facilities and its workforce. These actions were deemed necessary to meet the demands of the markets served by the Company and the economic environment and to improve profitability. In 2012 and 2013, the Company terminated 52 employees throughout North America, Europe, the United Kingdom and Asia. The Company also incurred lease termination costs related to the exit of a lease in North America and asset impairment expense related to the exit of this facility as well as to the exit of a leased facility in the United Kingdom.

On December 4, 2013, the Company’s President and Chief Executive Officer resigned in order to pursue other opportunities. The Company’s Board of Directors determined the departure to be termination without cause, pursuant to his employment agreement. The Company accrued $0.4 million for separation benefits in accordance with his employment agreement.

The following summarizes the activity in the Company’s accrual for severance and other exit costs (in thousands):

		Severance	Lease Exit Costs	Other Charges	Total

Accrual at December 31, 2011	0	$ ─	$ ─	$ ─	$ ─
Provision in 2012		572	184	133	889
Payments and other settlements in 2012		(266)	─	(133)	(399)
Accrual at December 31, 2012		306	184	─	490
Provision in 2013		596	27	─	623
Payments and other settlements in 2013		(372)	(211)	─	(583)
Accrual at December 31, 2013		$ 530	$ ─	$ ─	$530

The Company expects to pay substantially all of these amounts during the year ended December 31, 2014.

Legal Settlement

On March 13, 2014, the Company reached a settlement with its former chief financial officer pursuant to an administrative complaint that she filed in 2010 which provides for the payment of a one-time lump sum amount of $0.4 million and the issuance of 75,000 shares of Company common stock. The Company has reserved $0.6 million at December 31, 2013, which includes the lump sum amount, the market value of the common stock on December 31, 2013 and $0.1 million in legal expenses incurred as of December 31, 2013, which is included in accrued expenses and other current liabilities in the accompanying balance sheet at December 31, 2013. See note 17 for further discussion.

- 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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