Restructuring and Acquisition-Related Charges

The following table summarizes the Company's restructuring and acquisition-related gains and charges as presented in the Condensed Consolidated Statement of Operations (in thousands):



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Employee-related restructuring expenses	$	648		$	1,001		$	1,165		$	1,614
Fair value adjustments to Continuous Computing contingent consideration liability	(605		)	(1,293		)	(1,345		)	(1,038		)
Facility reductions	—			1,331			—			1,331
Write off of purchased computer software	(200		)	—			2,868			—
Net gain from sale of OS-9 software assets	43			—			(1,532		)	—
Integration-related expenses	—			—			—			576
Restructuring and acquisition-related charges, net	$	(114	)	$	1,039		$	1,156		$	2,483

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 associated with acquisitions or divestiture activities, facility abandonment and asset-related write-offs.

For the three months ended June 30, 2013, the Company recorded the following restructuring and acquisition-related charges:


•	$0.2 million gain resulting from forgiveness of remaining contractual payments due to our cancelled Security Gateway ("SEG") program partner;


•	$0.6 million gain due to the decrease in fair value of the 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


•	$0.6 million net expense for the severance of employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs.

For the three months ended June 30, 2012, the Company recorded the following restructuring and acquisition-related charges:


•	$1.3 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability;


•	$1.0 million net expense for the severance of employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; and


•	$1.3 million net expense resulting from facilities rationalization in certain North American sites.

For the six months ended June 30, 2013, the Company recorded the following restructuring and acquisition-related charges:


•	$1.5 million net gain from the sale of the Company's OS-9 software assets;


•	$2.9 million expense relating to the write off of the Company's SEG purchased computer software due to management's decision to abandon future development of this technology;


•	$1.3 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability; and


•	$1.2 million net expense for the severance of employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs.

For the six months ended June 30, 2012, the Company recorded the following restructuring and acquisition-related charges:


•	$1.0 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability;


•	$1.3 million net expense resulting from facilities rationalization in certain North American sites;


•	$1.6 million net expense for the severance of employees including a named executive officer, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; and


•	$0.6 million acquisition-related charges largely associated with overlap of notified employees as the Company transitioned its 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 June 30, 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	1,222			—			1,222
Reversals	(57		)	—			(57		)
Expenditures	(793		)	(184		)	(977		)
Balance accrued as of June 30, 2013	$	570		$	806		$	1,376

Of the $1.4 million accrued restructuring at June 30, 2013, $0.5 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.