Quarterly report pursuant to Section 13 or 15(d)

Restructuring Activity

v3.5.0.2
Restructuring Activity
 6 Months Ended
Jun. 30, 2016
Restructuring and Related Activities [Abstract]  
Restructuring Activity
Restructuring Activity
In connection with the Company's acquisition of Entropic, the Company entered into a restructuring plan to address matters primarily relating to the integration of the Company and Entropic businesses. In connection with this plan, the Company has terminated the employment of 87 Entropic employees since the acquisition closing date. The Company did not incur any associated employee separation charges in the three and six months ended June 30, 2016, as such terminations did not occur during such quarters. The Company recognized non-recurring employee separation charges of approximately $5.8 million in the three and six months ended June 30, 2015 related to these terminations.
Additionally, in connection with the restructuring plan, the Company ceased use of the former Entropic headquarters in 2015. The Company recognized lease charges of $0 and $2.0 million in the three and six months ended June 30, 2016, respectively, and $5.6 million in the three and six months ended June 30, 2015, based on the adjustment to the net present value of the remaining lease obligation on the cease of use date as well as the execution of the final sublease. The Company believes all restructuring charges related to the Entropic acquisition have been incurred as of June 30, 2016.
The following table presents the activity related to the plan, which is included in restructuring charges in the Consolidated Statements of Operations:
 
Three Months Ended June 30,
 
Six Months Ended June 30, 2016
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Employee separation expenses
$
—

 
$
5,796

 
$
—

 
$
5,796

Lease related charges (1)
—

 
5,593

 
1,976

 
5,593

Other
—

 
—

 
130

 
—

 
$
—

 
$
11,389

 
$
2,106

 
$
11,389


____________________________
(1)
In the six months ended June 30, 2016, includes $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured prior to the completion of the acquisition by MaxLinear. The Company recorded an adjustment to the lease restructuring due to changes in market conditions. In the three months ended June 30, 2016, includes no offsets to restructuring charges related to Entropic leases.
The following table presents a roll-forward of the Company's restructuring liability as of June 30, 2016, which is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets:
 
Employee Separation Expenses
 
Lease Related Charges
 
Other
 
Total
 
(in thousands)
Liability as of December 31, 2015
$
75

 
$
1,557

 
$
1

 
$
1,633

Restructuring charges (1)
—

 
1,976

 
130

 
2,106

Cash payments
(9
)
 
(2,376
)
 
(73
)
 
(2,458
)
Non-cash charges
—

 
165

 
(19
)
 
146

Liability as of June 30, 2016
$
66

 
$
1,322

 
$
39

 
$
1,427

____________________________
(1)
In the six months ended June 30, 2016, includes $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured during to the completion of the acquisition by MaxLinear. The Company recorded an adjustment to the lease restructuring due to changes in market conditions. In the three months ended June 30, 2016, includes no offsets to restructuring charges related to Entropic leases.