RESTRUCTURING COSTS AND ACCRUALS

2013 Restructuring Actions

In June 2013, the Company’s leadership evaluated the marketing and selling teams and, in an effort to better align sales resources with the Company’s strategic goals and enhance its global account team approach, eliminated 31 positions. As a result, the Company recognized related restructuring costs of $1.7 million in 2013.

During November and December 2013, the Company’s executive management team identified opportunities to lower costs in the supply and hardware technology group by eliminating 29 positions in hardware shared services and 15 positions in the supply and technology group. Additionally, an engineering reorganization at the same time resulted in the elimination of four engineering positions. As a result, the Company recognized $1.7 million of related restructuring costs in November and December 2013.

2012 Restructuring Plan

In June 2012, the Company committed to a series of strategic actions (the “2012 Plan”) to focus on its Broadcast and Media market and Video and Audio Post and Professional market and to drive improved operating performance. These actions included the divestiture of certain of the Company’s consumer-focused product lines, a rationalization of the business operations and a reduction in force. Actions under the plan included the elimination of approximately 280 positions in June 2012, the abandonment of one of the Company’s facilities in Burlington, Massachusetts and the partial abandonment of facilities in Mountain View and Daly City, California, in September 2012. During 2012, the Company recorded restructuring charges of $13.9 million related to severance costs and $8.6 million for the closure or partial closure of facilities, which included non-cash amounts of $1.4 million for fixed asset write-offs and $1.0 million for deferred rent liability write-offs during 2012.

During 2013, the Company recorded $0.1 million in additional severance costs and revisions totaling $1.8 million resulting from sublease assumption changes and other costs related to the abandoned facilities under the 2012 Plan. The Company substantially completed all actions under the 2012 Plan prior to December 31, 2012.

2011 Restructuring Plan

In October 2011, the Company committed to a restructuring plan (the “2011 Plan”) intended to improve operational efficiencies. Actions under the 2011 Plan included the elimination of approximately 210 positions and the closure of the Company’s facility in Irwindale, California. During 2011, the Company recorded $8.9 million related to severance costs and $0.2 million related to the closure of the Irwindale facility. During 2012, the Company recorded restructuring recoveries of $0.3 million as a result of revised severance estimates. There is no remaining accrual balance related to this plan at December 31, 2013, and no further restructuring actions are anticipated under this plan.

2010 Restructuring Plans

In December 2010, the Company initiated a worldwide restructuring plan (the “2010 Plan”) designed to better align financial and human resources in accordance with its strategic plans. During 2011, the Company recorded restructuring expense recoveries of $3.2 million as a result of revised severance estimates, as well as $0.7 million in additional costs related to the closure of a facility in Germany. During 2012, the Company recorded revisions totaling $0.7 million as a result of sublease assumption changes for the partial abandonment of a facility in Daly City, California, under the 2010 Plan. The remaining accrual balance of $0.5 million at December 31, 2013 is related to the closure of part of the Company’s Daly City, California facility. No further restructuring actions are anticipated under this plan.

2008 Restructuring Plans

In October 2008, the Company initiated a company-wide restructuring plan (the “2008 Plan”). During 2012, the Company recorded revisions totaling $1.8 million as a result of sublease assumption changes for the partial abandonment of a facility in Daly City, California, under the 2008 Plan. The remaining accrual balance of $2.2 million at December 31, 2013 is related to the closure of part of the Company’s Daly City, California and Dublin, Ireland facilities. No further restructuring actions are anticipated under this plan.

Restructuring Summary

The following table sets forth the activity in the restructuring accruals for the years ended December 31, 2013, 2012 and 2011 (Restated) (in thousands):



	Non-Acquisition-Related Restructuring Liabilities						Acquisition-Related Restructuring Liabilities
	Employee- Related			Facilities- Related & Other			Employee- Related			Facilities- Related			Total
Accrual balance at January 1, 2011 (Restated)	$	11,194		$	9,150		$	202		$	828		$	21,374
New restructuring charges – operating expenses	9,873			998			—			125			10,996
Revisions of estimated liabilities	(4,158		)	(251		)	(30		)	(23		)	(4,462		)
Accretion	—			226			—			9			235
Cash payments for employee-related charges	(13,209		)	—			(178		)	—			(13,387		)
Cash payments for facilities	—			(3,394		)	—			(425		)	(3,819		)
Non-cash write-offs	—			(200		)	—			(126		)	(326		)
Foreign exchange impact on ending balance	345			(68		)	6			2			285
Accrual balance at December 31, 2011 (Restated)	4,045			6,461			—			390			10,896
New restructuring charges – operating expenses	14,751			8,081			—			—			22,832
Revisions of estimated liabilities	(841		)	2,229			—			618			2,006
Accretion	—			382			—			22			404
Cash payments for employee-related charges	(14,082		)	—			—			—			(14,082		)
Cash payments for facilities	—			(4,893		)	—			(435		)	(5,328		)
Non-cash write-offs	—			(1,459		)	—			—			(1,459		)
Foreign exchange impact on ending balance	425			37			—			—			462
Accrual balance at December 31, 2012	4,298			10,838			—			595			15,731
New restructuring charges – operating expenses	3,539						—			—			3,539
Revisions of estimated liabilities	50			2,060			—			(279		)	1,831
Accretion	—			586			—			26			612
Cash payments for employee-related charges	(5,469		)	—			—			—			(5,469		)
Cash payments for facilities	—			(7,394		)	—			(342		)	(7,736		)
Non-cash write-offs	—			—			—			—			—
Foreign exchange impact on ending balance	(19		)	12			—			—			(7		)
Accrual balance at December 31, 2013	$	2,399		$	6,102		$	—		$	—		$	8,501

The employee-related accruals at December 31, 2013 and 2012 represent severance and outplacement costs to former employees that will be paid out during the year ended December 31, 2014, and are, therefore, included in the caption “accrued expenses and other current liabilities” in the Company’s consolidated balance sheet at December 31, 2013 and 2012.

The facilities-related accruals at December 31, 2013 and 2012 represent contractual lease payments, net of estimated sublease income, on space vacated as part of the Company’s restructuring actions. The leases, and payments against the amounts accrued, extend through 2021 unless the Company is able to negotiate earlier terminations. Of the total facilities-related accruals, $3.8 million was included in the caption “accrued expenses and other current liabilities” and $2.3 million was included in the caption “other long-term liabilities” in the Company’s consolidated balance sheet at December 31, 2013. At December 31, 2012, $6.3 million was included in the caption “accrued expenses and other current liabilities” and $5.1 million was included in the caption “other long-term liabilities.”