10. Restructuring

In June 2013, our Board of Directors (the “Board”) authorized, and we implemented a restructuring plan (the “Q2 2013 plan”) that included a reduction in work force of approximately 520 employees and the closure of certain office facilities as part of an overall plan to better align our cost structure against market opportunities. As a result of this restructuring plan, we recorded a charge of $25.5 million in the nine months ended September 30, 2013 which is included in operating expenses in our consolidated statement of operations. This restructuring charge was composed of $22.8 million of employee severance, $1.6 million related to non-cancelable contracts and $1.1 million related to other non-cash charges. This restructuring charge does not include the impact of $14.3 million of net stock-based expense reversals associated with the net effect of forfeitures from employee terminations and the acceleration of unvested stock awards which were recorded in stock-based expense.

Changes in the restructuring liability related to the Q2 2013 plan are as follows (in thousands):


Restructuring liability – June 30, 2013	$	5,400
Additional expense in the third quarter of 2013		428
Cash payments made in the third quarter of 2013		(4,429	)

Restructuring liability – September 30, 2013	$	1,399

In addition, we exited certain additional facilities in September 2013 for which we held non-cancelable lease agreements. Accordingly, we recorded restructuring expense of $6.0 million for these facilities that have lease terms that expire within the next four years.