Restructuring and Reorganization Charges

9 Months Ended

Sep. 30, 2016

Restructuring And Related Activities [Abstract]

Restructuring and Reorganization Charges

5.  RESTRUCTURING AND REORGANIZATION CHARGES

During the third quarter of 2016 and 2015, we recorded restructuring and reorganization charges of ($0.2) million and $0.8 million, respectively, and for the nine months ended September 30, 2016 and 2015 recorded restructuring and reorganization charges of ($0.6) million and $1.8 million.  

Our restructuring activities during the nine months ended September 30, 2016 are primarily made up of the following:

• We reduced our workforce by approximately 60 employees, primarily in North America, as a result of organizational changes and the realignment of our workforce.  As a result, we incurred restructuring charges of $6.5 million during the nine months ended September 30, 2016.

• In September 2015 we entered into an agreement (the “Agreement”) with certain former management personnel for the sale of our cyber-security business marketed under the Invotas brand.  In February 2016, this business was acquired by a third-party.  Based on the terms of the Agreement, we received additional consideration contingent upon a liquidation event, as defined in the Agreement.  This resulted in an additional gain on the sale of $6.6 million in the first quarter of 2016, which reduced restructuring and reorganization charges.

The activity in the business restructuring and reorganization reserves during the nine months ended September 30, 2016 was as follows (in thousands):  

	Termination			Facilities			Business
	Benefits			Abandonment			Operations			Other			Total
January 1, 2016 balance	$	1,637		$	1,357		$	—		$	—		$	2,994
Charged to expense during period		6,471			246			(6,611	)		(707	)		(601	)
Cash payments		(4,890	)		(339	)		—			—			(5,229	)
Adjustment for the gain on the disposition of business operations	—			—				6,611		—				6,611
Adjustment for asset impairment		—			(194	)		—			—			(194	)
Other	362			86			—			707				1,155
September 30, 2016 balance	$	3,580		$	1,156		$	-		$	-		$	4,736