Restructuring and Exit Costs

2017 September Restructuring Plan

In September 2017, the Company initiated a restructuring plan to optimize headcount in connection with the acquisition and integration of the assets and business of Nesscap, as well as to implement additional organizational efficiencies. Total charges for the September 2017 restructuring plan were $1.1 million, and were primarily incurred in the third quarter of 2017. Total net charges for the three months ended March 31, 2018 for this restructuring plan were $(57,000), which represented restructuring charges of $45,000 adjusted for reversals of expense of $102,000; the plan was completed in the third quarter of 2018.

The charges related to the September 2017 restructuring plan consisted of employee severance costs which were paid in cash. The charges were recorded within “restructuring and exit costs” in the condensed consolidated statements of operations.

The following table summarizes the changes in the liabilities for the September 2017 restructuring plan, which were recorded in “accrued employee compensation” in the Company’s condensed consolidated balance sheet (in thousands):



	September 2017 Plan
Restructuring liability as of December 31, 2016	$	—
Costs incurred	1,275
Amounts paid	(431		)
Accruals released	(27		)
Restructuring liability as of December 31, 2017	817
Costs incurred	45
Amounts paid	(423		)
Accruals released	(102		)
Restructuring liability as of March 31, 2018	$	337

2015 Restructuring Plan Lease Impairment

In 2015 and 2016, the Company completed a restructuring plan that consolidated U.S. manufacturing operations and disposed of the Company’s microelectronics product line. In connection with this plan, in June 2015, the Company ceased use of approximately 60,000 square feet of its Peoria, AZ manufacturing facility, and determined this leased space would have no future economic benefit to the Company based on the business forecast. The Company had recorded a liability for the future rent obligation associated with this space, net of estimated sublease income, in accordance with ASC Topic 420. As of December 31, 2018, lease obligation liabilities related to this leased space of $0.5 million were included in “accounts payable and accrued liabilities” and “other long term liabilities” in the condensed consolidated balance sheets. In connection with the adoption of ASC 842, the lease obligation liability was reclassified on January 1, 2019, and as of March 31, 2019, $0.4 million of lease impairment represented a reduction of the Company’s operating lease right-of-use asset in the Company’s condensed consolidated balance sheet.