Restructuring and Other Charges

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



	December 31, 2013			December 31, 2012
Employee-related restructuring expenses	$	5,463		$	2,769
Fair value adjustments to contingent consideration liability	(1,740		)	(5,052		)
Facility reductions	602			1,590
Write off of purchased computer software	2,868			—
Net gain from sale of OS-9 software assets	(1,532		)	—
Integration-related expenses	1,039			576
Non-recurring legal expenses	779			—
Restructuring and other charges, net	$	7,479		$	(117	)

Restructuring and other charges may include costs from non-recurring events such as costs incurred for employee severance, acquisition or divestiture activities, excess facility costs, certain legal costs, asset related charges and other expenses associated with business restructuring activities.

During the year ended December 31, 2013, the Company recorded the following restructuring and other charges:


•	$5.5 million net expense for the severance of 203 employees, primarily related to Shanghai and Penang site reductions and severance for named executives, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$2.9 million expense relating to the write off of the Company's Security Gateway ("SEG") purchased computer software resulting from management's decision to abandon this technology;


•	$1.7 million gain resulting from the decrease in fair value of the Continuous Computing contingent consideration liability;


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


•	$1.0 million net expense principally associated with asset write-offs, legal fees, and personnel overlap resulting from resource consolidation primarily associated with our Shanghai and Penang site reductions;


•	$0.6 million net lease abandonment expense primarily resulting from a lease abandonment charge resulting from the shuttering of our San Diego facility; and


•	$0.8 million legal expenses associated with a non-operating strategic project.

During the year ended December 31, 2012, the Company recorded the following restructuring and other charges:


•	$2.8 million net expense for the severance of employees, including a $0.9 million contractual severance benefit provided to our former Chief Executive Officer, and severance paid to other executive officers, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$5.1 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability;


•	$1.6 million net expense resulting from facilities rationalization in certain North American sites; and


•	$0.6 million expense related to expenses incurred related to the integration and acquisition of Continuous Computing.

Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2013 and 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	5,599			943			6,542
Reversals	(136		)	(341		)	(477		)
Expenditures	(3,875		)	(631		)	(4,506		)
Balance accrued as of December 31, 2013	$	1,786		$	961		$	2,747

Of the $2.7 million and $1.2 million accrued restructuring balance at December 31, 2013 and 2012, $0.6 million is included in other long-term liabilities on the Consolidated Balance Sheets as of December 31, 2013. These amounts represent the long-term portion of accrued lease abandonment charges. The remaining balances are presented in other accrued liabilities on the Consolidated Balance Sheets.

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.