Termination Benefits and Other Cost Reduction Actions

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Termination Benefits and Other Cost Reduction Actions

11. Termination Benefits and Other Cost Reduction Actions

The Company undertook certain cost containment measures in an effort to better align operating costs with market and business conditions. Expenses related to these actions, which include real estate consolidations, elimination of redundant functions and employees, were summarized below (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Employee severance and related costs	$	4,117	$	1,976	$	10,241	$	8,947
Facilities-related costs		601		123		932		3,797
Total	$	4,718	$	2,099	$	11,173	$	12,744

For the three and nine months ended September 30, 2015 restructuring costs of $1.2 million and $4.2 million have been included in cost of revenues and $3.5 million and $7.0 million have been included in selling, general and administrative expenses (“SG&A expenses”), respectively. For the three and nine months ended September 30, 2014 restructuring costs of $1.2 million and $2.5 million have been included in cost of revenues and $0.9 million and $10.2 million have been included in SG&A expenses, respectively.

The following table summarizes the Company’s restructuring reserve as of September 30, 2015 and December 31, 2014 (in thousands):

	Balance at December 31, 2014		Net Costs		Cash Payments			Balance at September 30, 2015
Employee severance and related costs	$	5,145	$	10,241	$	(10,291	)	$	5,095
Facilities-related charges		7,098		932		(4,846	)		3,184
Total	$	12,243	$	11,173	$	(15,137	)	$	8,279

The Company expects that severance payments accrued at September 30, 2015 will be paid within the next twelve months. Certain facility costs will be paid over the remaining lease term of the exited facilities through 2019.

The net costs in the table above exclude non-cash charges of approximately $0.5 million for the nine months ended September 30, 2015 related to abandoned assets at certain facilities.