Restructuring Charges (Notes)

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]


NOTE 10.	Restructuring Charges

Diagnostic Imaging restructuring initiative

On February 28, 2013, we announced a plan to restructure our Diagnostic Imaging business to significantly reduce costs and focus on maximizing cash flow from our DIS services business (the "Diagnostic Imaging restructuring initiative"). The Diagnostic Imaging restructuring initiative includes a reduction in force. In addition, as part of the Diagnostic Imaging restructuring initiative, we entered into an agreement in September 2013 with a third party to outsource the majority of the manufacturing associated with our cameras. As a result of this Diagnostic Imaging restructuring initiative, we estimate that we will incur in total approximately $1.7 million to $1.8 million in restructuring charges, the vast majority of which were incurred during fiscal year 2013. Included in this estimated range is approximately $1.6 million of employee related costs, while the remaining costs include contract termination costs and other related costs. Substantially all of the restructuring efforts associated with this initiative have been completed as of December 31, 2013. Through December 31, 2013, we have expensed approximately $1.7 million of charges associated with the Diagnostic Imaging restructuring initiative, including approximately $1.5 million of employee related costs. Restructuring liabilities and associated charges are measured at fair value as incurred. Restructuring charges do not include charges associated with excess inventory, any excess capacity, or personnel wages and benefits before personnel leave the Company.

The following table includes information regarding our current Diagnostic Imaging restructuring initiative:




(in thousands)	Accrued at December 31, 2012		Accrued Costs		Cash Payments and Other Reductions		Accrued at December 31, 2013
Total Diagnostic Imaging restructuring initiative	$	—	$	1,728	$	1,239	$	489

All accrued Diagnostic Imaging restructuring charges at December 31, 2013 are included in the accrued compensation line item in the audited consolidated balance sheets. All the Diagnostic Imaging restructuring charges for the year ended December 31, 2013 are included in the Diagnostic Imaging segment.

Facilities restructuring initiative

On January 27, 2014, we announced a plan to exit our 47,000 square foot former headquarters facility in Poway, California (the "Facilities restructuring initiative"). This action was undertaken as the facility has excess space and capacity given our current operating plan. We entered into a termination agreement to end the lease on the facility as of April 30, 2014. The original term of the lease would have continued through February 29, 2016. Concurrently with the termination of the lease for the 47,000 square foot Poway, California facility, we entered into a new lease agreement on January 23, 2014 for a separate 21,300 square foot facility in Poway, California to house our Diagnostic Imaging operations.

As a result of the facilities restructuring initiative, we estimate that we will incur in total approximately $0.6 million to $0.8 million in restructuring charges, which we anticipate to be incurred in the first half of fiscal year 2014. The estimated charges are comprised of lease termination, moving and other related costs. No charges were incurred as of December 31, 2013 related to this initiative.

- 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