Restructuring Obligations and Other Charges

12 Months Ended

Dec. 31, 2014

Restructuring Obligations and Other Charges [Abstract]

Restructuring Obligations and Other Charges

Note 6. Restructuring Obligations and Other Charges

In the fourth quarter of 2013, the Company implemented a reduction in our work-from-home agent and corporate workforce to reduce our ongoing cost structure. The Company reduced its agent workforce by 210 employees, and its corporate workforce by 15 employees. The affected employees were terminated as of December 30, 2013, with certain corporate employees remaining with the Company for a limited time thereafter. As a result, we recorded a restructuring charge of $317,000 in cost of services, $11,000 in research and development expense, $45,000 in sales and marketing expense and $58,000 in general and administrative expense in the fourth quarter of 2013. The restructuring charge was comprised of employee termination costs. As of December 31, 2013, the balance on this restructuring obligation was $431,000, which we paid in cash during the first quarter of 2014.

In the second quarter of 2012, we initiated a phased reduction in our sales agent workforce. These selling activities were transitioned to either partner sales centers or third-party sales specialists. We reduced our workforce by 190 employees, or approximately 15% of our total employee headcount as of the end of the second quarter of 2012. All of the affected employees were terminated by June 30, 2012. As a result, we recorded a restructuring charge of $142,000 in sales and marketing expense and $30,000 in general and administrative expense in the second quarter of 2012. The restructuring charge was primarily comprised of employee termination costs and professional services. As of December 31, 2012, all amounts relating to the reduction in sales agent workforce have been paid.

The following table summarizes activity associated with the restructuring obligation (see also Note 7) and related expenses incurred for the years ended December 31, 2014 and 2013 (in thousands):

	Severance⁽¹⁾			Total
Restructuring obligations, December 31, 2012	$	—		$	—
Restructuring costs incurred (fourth quarter of 2013)		431			431
Cash payments		—			—
Restructuring obligations, December 31, 2013	$	431		$	431
Restructuring costs incurred		—			—
Cash payments		(431	)		(431	)
Restructuring obligations, December 31, 2014	$	—		$	—

(1)	Severance costs include those expenses related to severance pay and related employee benefit obligations.

- 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.

+ References+ Details