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Severance and Other Charges
12 Months Ended
Dec. 31, 2015
Severance and Other Charges  
Severance and Other Charges

8. Severance and Other Charges

        Severance, exit and other charges consist of the following (in thousands):

                                                                                                                                                                                    

 

 

Years Ended
December 31,

 

 

 

2015

 

2014

 

Employee severance expense

 

$

1,210 

 

$

784 

 

Other closure costs

 

 

272 

 

 

 

Lease exit costs

 

 

 

 

117 

 

Legal settlements

 

 

 

 

265 

 

​  

​  

​  

​  

Total severance and other charges

 

$

1,482 

 

$

1,166 

 

​  

​  

​  

​  

​  

​  

​  

​  

        The Company incurred severance costs in 2014 related to its North American and U.K. locations, including severance benefits covering a one year period for its former chief financial officer, pursuant to a separation and release agreement. The Company incurred additional lease exit costs related to the exit of leases in North America.

        The Company incurred severance costs in 2015 related to its North American locations, including $0.8 million of severance benefits covering a one year period for our former president and chief operating officer and our former general counsel, corporate secretary and vice president, administration, pursuant to separation and release agreements. Additionally, on December 11, 2015, the Company announced its intention to close its Canadian manufacturing facility. Certain costs associated with this closure, primarily severance costs, totaling $0.6 million have been accrued as of December 31, 2015, and additional costs will continue to be accrued until the ultimate closure of this facility in 2016.

        The following summarizes the activity in the Company's accrual for severance and other exit costs (in thousands):

                                                                                                                                                                                    

 

 

Severance

 

Lease Exit
Costs

 

Total

 

December 31, 2013

 

$

530

 

$

 

$

530

 

Provision

 

 

784

 

 

117

 

 

901

 

Payments

 

 

(1,021

)

 

(75

)

 

(1,096

)

​  

​  

​  

​  

​  

​  

December 31, 2014

 

$

293

 

$

42

 

$

335

 

Provision

 

 

1,210

 

 

 

 

1,210

 

Payments

 

 

(411

)

 

(42

)

 

(453

)

​  

​  

​  

​  

​  

​  

December 31, 2015(1)

 

$

1,092

 

$

 

$

1,092

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

 

(1)          

The Company expects to pay this accrual during the year ended December 31, 2016.