v2.3.0.15
Restructuring Charges
9 Months Ended
Sep. 30, 2011
Restructuring Charges [Abstract] 
Restructuring Charges

5. Restructuring Charges

During the first quarter of fiscal 2011, we implemented restructuring actions that resulted in an aggregate charge of $294,000 and the elimination of most of Xenos' general and administrative department. Also included in the aggregate charges for the first quarter of 2011 was a $125,000 idle facilities charge related to our South San Francisco facility.

During the second quarter of fiscal 2011, we implemented a plan to restructure parts of our North American product development and global sales and marketing operations in order to align our cost structure with our current business plan. As a result of the restructuring program, we reduced our global workforce by 26 positions and recorded $720,000 of restructuring charges related to employee severance arrangements. In addition to these charges, we reversed approximately $283,000 of a previously accrued severance liability. This severance liability was initially recorded in December 2004 in connection with litigation related to a previous reduction in work force in Europe. Risk assessment rendered by management had indicated that the Company maintained adequate legal defenses and further settlement payments were no longer a significant risk. Accordingly, this liability was reversed at the end of the second quarter of fiscal 2011.

During the third quarter of fiscal 2011, we closed our Xenos facility in Europe and incurred an idle facilities charge of approximately $158,000. Historically, restructuring charges have included costs associated with reductions in workforce, exits of idle facilities and disposals of fixed assets. These restructuring charges were based on actual and estimated costs incurred including estimates of sublease income on portions of our idle facilities that we periodically update based on market conditions and in accordance with our restructuring plans. These estimates were impacted by the rules governing the termination of employees, especially those in foreign countries.

 

The following table summarizes the restructuring accrual activity during the nine months ended September 30, 2011 (in thousands):

 

     Severance
& Benefits		     Facility
Related		     Total  

Balance at December 31, 2010

    $ 654      $ 631      $ 1,285   

Restructuring charges

      573        316        889   

Cash payments, net of rents collected on sublease for Q1

      (425 )      (339 )      (764 ) 

Cash payments, net of rents collected on sublease for Q2

      (650 )      (322 )      (972 ) 

Cash payments, Q3

      (186 )      (66 )      (252 ) 

Reclassified as a long-term asset (1)

      —          26        26   

Adjustments (2)

      34        (4 )      30   
  

 

 

    

 

 

    

 

 

  

Balance at September 30, 2011

      —          242        242   

Less: current portion

      —          (109 )      (109 ) 
  

 

 

    

 

 

    

 

 

  

Long-term balance at September 30, 2011

    $ —        $ 133      $ 133   
  

 

 

    

 

 

    

 

 

  

(1) The adjustment represents the long-term portion of the estimated operating expenses reimbursable to Actuate under its South San Francisco facility sublease agreement. This reimbursable expense was initially reclassified out of the restructuring accrual and into long-term assets in fiscal 2010.
(2) Adjustments mainly reflect the impact of foreign currency translation.