Restructuring and Other Charges

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



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Employee-related restructuring expenses	$	258		$	2,916		$	1,514		$	4,081
Fair value adjustments to Continuous Computing contingent consideration liability	(29		)	(395		)	(156		)	(1,740		)
Facility reductions	—			(155		)	(6		)	(155		)
Write off of purchased computer software	—			—			—			2,868
Net gain from sale of OS-9 software assets	—			—			—			(1,532		)
Integration-related expenses	728			328			1,671			328
Non-recurring legal expenses	372			187			421			187
Restructuring and other charges, net	$	1,329		$	2,881		$	3,444		$	4,037

Restructuring and other charges includes expenses incurred for employee terminations due to a reduction of personnel resources resulting from modifications of business strategy or business emphasis. Employee-related restructuring expenses include severance benefits, notice pay and outplacement services. Restructuring and other charges may also include expenses incurred associated with acquisition or divestiture activities, facility abandonments and other expenses associated with business restructuring actions.

For the three months ended September 30, 2014, the Company recorded the following restructuring charges:


•	$0.3 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for four additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$0.4 million legal expenses associated with non-operating strategic projects; and


•	$0.7 million integration-related net expense principally associated with asset write-offs and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure.

For the three months ended September 30, 2013, the Company recorded the following restructuring and other charges:


•	$0.2 million gain resulting from the revision of prior sublease assumptions for a previously abandoned facility;


•	$0.3 million integration-related net expense principally associated with asset write-offs, legal fees, and personnel overlap resulting from resource consolidation;


•	$2.9 million net expense for the severance of 154 employees related to Shanghai and Penang site reductions, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$0.2 million legal expenses associated with restructuring actions and non-operating strategic projects; and


•	$0.4 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability. The Company assessed 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.

For the nine months ended September 30, 2014, the Company recorded the following restructuring and acquisition-related charges:


•	$1.5 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for 18 additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$1.7 million integration-related net expense principally associated with asset write-offs and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure;


•	$0.4 million legal expenses associated with non-operating strategic projects; and


•	$0.2 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability.

For the nine months ended September 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;


•	$1.7 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability; and


•	$4.1 million net expense for the severance of 182 employees primarily related to Shanghai and Penang site reductions, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs.

Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013, consisted of the following (in thousands):



	Severance, payroll taxes and other employee benefits			Facility reductions			Total
Balance accrued as of December 31, 2013	$	1,786		$	961		$	2,747
Additions	1,620			—			1,620
Reversals	(106		)	(6		)	(112		)
Expenditures	(2,815		)	(328		)	(3,143		)
Balance accrued as of September 30, 2014	$	485		$	627		$	1,112

Of the $1.1 million accrued restructuring at September 30, 2014, $0.5 million is included in other long-term liabilities, with the remaining balance being included in other accrued liabilities on the Condensed 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.