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,
	2017		2016		2017		2016
Employee-related restructuring expenses	$	1,061	$	655	$	2,318	$	1,456
Integration-related and other non-recurring expenses	226		—		439		146
Facility reductions	57		—		57		—
Restructuring and other charges, net	$	1,344	$	655	$	2,814	$	1,602

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, 2017, the Company recorded the following restructuring charges:

•

$1.1 million net expense relating to the severance for 57 employees primarily in Asia and North America in connection with a reduction in legacy Hardware Solutions engineering and support staff as well as rationalization across various other functional organizations to better align with the Company's go-forward strategy. An additional $1.0 million of expense will be recognized over a portion of the notified employees’ respective service terms that span up to the next three quarters;


•	$0.2 million in non-recurring legal expenses; and


•	$0.1 million in facility reductions.

For the three months ended September 30, 2016, the Company recorded the following restructuring and other charges:


•	$0.7 million net expense relating to the severance for 9 employees whose positions were primarily in North America due to the transition of the Company's supply chain operations to third party integration partners.

For the nine months ended September 30, 2017, the Company recorded the following restructuring charges:


•	$2.3 million net expense relating to the severance for 87 employees primarily in Asia and North America in connection with a reduction in legacy Hardware Solutions engineering and support staff as well as rationalization across various other functional organizations to better align with the Company's go-forward strategy;


•	$0.4 million in non-recurring legal expenses associated with closing a strategic agreement with a MediaEngine channel partner; and


•	$0.1 million in facility reductions.

For the nine months ended September 30, 2016, the Company recorded the following restructuring and other charges:


•	$1.5 million net expense relating to the severance for 32 employees primarily in connection with a reduction to the Company's hardware engineering presence in Shenzhen as well as reductions in North America due to the transition of the Company's supply chain operations to third party integration partners; and


•	$0.1 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions.

Accrued restructuring, which is included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016, consisted of the following (in thousands):



	Severance, payroll taxes and other employee benefits			Facility reductions			Total
Balance accrued as of December 31, 2016	$	1,347		$	90		$	1,437
Additions	2,484			57			2,541
Reversals	(166		)	—			(166		)
Expenditures	(2,757		)	(147		)	(2,904		)
Balance accrued as of September 30, 2017	$	908		$	—		$	908

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.