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						Six Months Ended
	June 30,						June 30,
	2015			2014			2015		2014
Employee-related restructuring expenses	$	(268	)	$	403		$	3,765	$	1,256
Integration-related expenses	435			539			428		992
Facility reductions	392			—			392		(6		)
Fair value adjustments to Continuous Computing contingent consideration liability	—			(127		)	—		(127		)
Non-recurring legal expenses	—			—			109		—
Restructuring and other charges, net	$	559		$	815		$	4,694	$	2,115

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 June 30, 2015, the Company recorded the following restructuring charges:

•

$0.3 million net reversal of accrued severance expense for 9 of the 131 employees whose positions were initially identified as being eliminated by management. Upon further implementation of the restructuring plan, these positions were either maintained or the employees found alternative roles which resulted in no severance being paid. These actions were in connection with the restructuring of the Company's Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs


•	$0.4 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions; and


•	$0.4 million lease abandonment expense associated with reductions in certain of our international sites.

For the three months ended June 30, 2014, the Company recorded the following restructuring and other charges:


•	$0.4 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; and


•	$0.5 million integration-related net expense principally associated with asset write-offs and personnel overlap resulting from resource consolidations primarily associated with the Shanghai and Penang site closures; and


•	$0.1 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability.

For the six months ended June 30, 2015, the Company recorded the following restructuring charges:

•

$3.8 million net expense relating to the severance of 122 employees primarily within Asia and North America. These actions were in connection with the restructuring of the Company's Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$0.4 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions;


•	$0.4 million lease abandonment expense associated with reductions in certain of our international sites; and


•	$0.1 million legal expenses associated with non-operating strategic projects, which processes were concluded in the first quarter of 2015.

For the six months ended June 30, 2014, the Company recorded the following restructuring and other charges:


•	$1.3 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for 14 additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs;


•	$1.0 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource consolidations primarily associated with the Penang site closures; and


•	$0.1 million gain due to the decrease in fair value of the Continuous Computing contingent liability.

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, 2015 and December 31, 2014, consisted of the following (in thousands):



	Severance, payroll taxes and other employee benefits			Facility reductions			Total
Balance accrued as of December 31, 2014	$	166		$	587		$	753
Additions	4,321			392			4,713
Reversals	(556		)	—			(556		)
Expenditures	(3,463		)	(86		)	(3,549		)
Balance accrued as of June 30, 2015	$	468		$	893		$	1,361

Of the $1.4 million accrued restructuring at June 30, 2015, $0.3 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.