7. Rebranding Strategy and Cost Reduction Initiatives

Over the past several years, our company has grown into approximately a $1.4 billion enterprise in part through our acquisition and internal cultivation of different brands. We have historically differentiated those brands primarily based on the identity of the customers they serve. After careful examination of the trends taking shape in the markets we serve, in 2012, we determined that going forward, our commercial customers can benefit from a more unified and streamlined brand strategy. We consolidated our commercial brands and realigned our customer segments in an effort to realize significant growth and to achieve a more efficient cost structure. We believe this unification provides an improved customer experience, operational synergies and benefits to all of our stakeholders, providing a brand that better represents the technology solutions provider we are today.

Effective December 31, 2012, we changed our corporate name from PC Mall, Inc. to PCM, Inc. and combined our primary commercial subsidiaries PC Mall Sales, Inc., Sarcom, Inc. and PC Mall Services, Inc. into a single subsidiary. The combined subsidiary now operates under the unified commercial brand PCM and generally includes our SMB, MME and portions of our Corporate & Other segments. Additionally, in connection with the rebranding, our PC Mall Gov, Inc. subsidiary changed its name to PCMG, Inc. and now operates under the brand PCM-G.

An important part of these initiatives is a focused reduction of our overhead expenses. These and other related actions resulted in severance and restructuring related expenses of approximately $2.3 million and $2.9 million, respectively, in the years ended December 31, 2013 and 2012. No such costs were incurred in the year ended December 31, 2014. A summary of our total restructuring costs, which are included in “Selling, general and administrative expenses” on our Consolidated Statements of Operations, is as follows by each of our reportable operating segments (in thousands):

	Commercial		Public Sector		MacMall		Corporate & Other		Consolidated
Year Ended December 31, 2013
Employee termination costs	$	214	$	34	$	16	$	430	$	694
Accelerated trademark amortization costs	916		—		—		—		916
Other costs	200		351		5		117		673
Total	$	1,330	$	385	$	21	$	547	$	2,283

Year Ended December 31, 2012
Employee termination costs	$	566	$	19	$	137	$	953	$	1,675
Accelerated trademark amortization costs	874		—		—		—		874
Other costs	—		—		—		349		349
Total	$	1,440	$	19	$	137	$	1,302	$	2,898

Employee termination costs include costs of severance and other discretionary payments upon employee terminations, and include estimated taxes and benefits associated with such payments. Trademark amortization costs include accelerated amortization of the Sarcom and NSPI trademarks compared to the previous year resulting from the anticipated consolidation of our commercial brands to PCM in January 2013. Such trademarks became fully amortized in December 2013. Other costs in the table above represent legal and other costs related to various restructuring and related activities.

A summary rollforward of our restructuring costs, which are recorded as part of “Accrued expenses and other current liabilities” on our Consolidated Balance Sheets, is as follows (in thousands):

		Balance as of December 31, 2013			Costs Charged to Expense			Payments			Adjustments			Balance as of December 31, 2014
Employee termination costs		$	140		$	—		$	(140	)	$	—		$	—

	Balance as of December 31, 2012		Costs Charged to Expense		Payments			Adjustments		Balance as of December 31, 2013
Employee termination costs	$	212	$	694	$	(766	)	$	—	$	140
Other costs	43		673		(716		)	—		—

	Balance as of December 31, 2011		Costs Charged to Expense		Payments			Adjustments		Balance as of December 31, 2012
Employee termination costs	$	—	$	1,675	$	(1,463	)	$	—	$	212
Other costs	—		349		(306		)	—		43