Note 5 — Reorganization

In the first quarter of 2014 the Company terminated approximately 1% of its employees across various geographies and functions primarily to realign resources due to the Company’s new organizational structure put in place in late 2013. The Company incurred $0.8 million and $1.0 million of severance and related costs in the three months ended March 31, 2014 and June 30, 2014, respectively. The accrual at June 30, 2014 is expected to be paid by the end of 2014.

During 2013 the Company incurred $1.9 million of severance and related costs for the elimination of 31 jobs or approximately 2.5% of its workforce worldwide to streamline its operations. Approximately $1.6 million of the costs were recognized in the three months ended March 31, 2013 and approximately $0.3 million were recognized in the three months ended June 30, 2013.

The following table rolls forward the activity in the reorganization accrual for the six months ended June 30, 2014 (in thousands):


	Workforce Reduction
Accrual at December 31, 2013	$	121
Additions		1,888
Cash payments		(875	)

Accrual at June 30, 2014	$	1,134