Restructuring and Other Charges

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

The following table summarizes the Company's restructuring and other charges as presented in the condensed consolidated statements of operations (in thousands):



	Three Months Ended
	March 31,
	2018		2017
Employee-related restructuring expenses	$	864	$	42
Integration-related, legal and other non-recurring expenses	517		193
Facility reductions	190		—
Restructuring and other charges, net	$	1,571	$	235

Restructuring and other charges may include costs from 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.

For the three months ended March 31, 2018, the Company recorded the following restructuring charges:

•

$0.9 million severance expense relating to 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 our go-forward strategy. Severance expense includes 14 employees notified in the period as well as $0.5 million of expense amortization for employees who were notified in a previous period and whose respective severance term spans greater than one quarter, and an additional $0.2 million of severance expense remains to be amortized over the next two quarters;


•	$0.5 million in integration-related, legal and other non-recurring expenses related to the contract manufacturing transfer and non-recurring legal costs; and


•	$0.2 million in facility reductions in the United States.

For the three months ended March 31, 2017, the Company recorded the following restructuring charges:


•	$0.1 million net expense relating to the severance for 2 employees in connection with a reduction to our hardware engineering presence in Shenzhen; and


•	$0.2 million in non-recurring legal expenses associated with closing a strategic agreement with a MediaEngine channel partner.

Accrued restructuring, which is included in other accrued liabilities in the accompanying condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017, consisted of the following (in thousands):



	Severance, payroll taxes and other employee benefits			Facility reductions			Total
Balance accrued as of December 31, 2017	$	2,774		$	—		$	2,774
Additions	872			190			1,062
Reversals	(5		)	—			(5		)
Expenditures and payments	(2,297		)	(10		)	(2,307		)
Balance accrued as of March 31, 2018	$	1,344		$	180		$	1,524

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.