Accrued Restructuring

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Accrued Restructuring and Acquisition-Related Charges

The following table summarizes the Company's restructuring and acquisition-related charges as presented in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended
	March 31,
	2013			2012
Net gain from sale of OS-9 software assets	$	(1,575	)	$	—
Write off of purchased computer software	3,068			—
Fair value adjustments to Continuous Computing contingent consideration liability	(740		)	255
Employee-related restructuring expenses	517			613
Integration-related expenses	—			576
Restructuring and acquisition-related charges, net	$	1,270		$	1,444

Restructuring and acquisition-related charges typically consist of costs incurred for employee terminations due to a reduction of personnel resources driven by modifications of business strategy or business emphasis. Employee severance and related costs include severance benefits, notice pay and outplacement services. Restructuring and acquisition related charges may also include expenses incurred related to acquisitions, excess facility costs and asset related charges.

In the three months ended March 31, 2013, the Company recorded the following restructuring and acquisition-related charges:

• $1.6 million net gain from the sale of the Company's OS-9 software assets;

• $3.1 million expense relating to the write off of the Company's Security Gateway ("SEG") purchased computer software due to management's decision to abandon future development of this technology;

• $0.7 million gain due to the decrease in fair value of Continuous Computing contingent consideration liability. The Company assesses the fair value of the contingent consideration liability on a quarterly basis, adjusting the liability to fair value based on a detailed analysis of all expected contingent consideration eligible revenues; and

• $0.5 million net expense for the severance of nine employees, net of reduction resulting from changes in previously estimated amounts for employee severance and associated payroll costs.

In the three months ended March 31, 2012, the Company recorded the following restructuring and acquisition-related charges:

• $0.3 million expense due to accretion of the Continuous Computing contingent consideration liability;

• $0.6 million net severance related expense including the severance for a named executive officer and other employees relating to the Continuous Computing integration; and

• $0.6 million integration-related costs, including $0.5 million associated with the Company transitioning R&D activities to lower cost geographies.

Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012, consisted of the following (in thousands):

	Severance, payroll taxes and other employee benefits			Facility reductions			Total
Balance accrued as of December 31, 2012	$	198		$	990		$	1,188
Additions	575			—			575
Reversals	(58		)	—			(58		)
Expenditures	(415		)	(92		)	(507		)
Balance accrued as of March 31, 2013	$	300		$	898		$	1,198

Of the $1.2 million accrued restructuring at March 31, 2013, $0.6 million represents the long-term portion of accrued lease abandonment charges, with the remaining balance representing the short-term portion of accrued restructuring.

The Company evaluates the adequacy of the accrued restructuring charges on a quarterly basis. Reversals are recorded in the period in which the Company determines that expected restructuring obligations are less than the amounts accrued.