Quarterly report pursuant to Section 13 or 15(d)

Restructuring Activity

v3.5.0.2
Restructuring Activity
 9 Months Ended
Sep. 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 nine months ended September 30, 2016, as such terminations did not occur during such periods. The Company recognized non-recurring employee separation charges of approximately $5.7 million in the nine months ended September 30, 2015 related to these terminations. During the three months ended September 30, 2015, the Company recorded a $0.1 million reduction in employee separation charges.
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 nine months ended September 30, 2016, respectively, and $0.6 million and $6.2 million in the three and nine months ended September 30, 2015, respectively, 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 September 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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Employee separation expenses
$
—

 
$
(143
)
 
$
—

 
$
5,653

Lease related charges (1)
—

 
568

 
1,976

 
6,161

Other
—

 
—

 
130

 
—

 
$
—

 
$
425

 
$
2,106

 
$
11,814


____________________________
(1)
The lease related charges for the nine months ended September 30, 2016, include $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured prior to the completion of the acquisition of Entropic. The Company recorded a charge to the lease restructuring due to changes in market conditions. In the three months ended September 30, 2016, no offsets to restructuring charges related to Entropic leases are included.
The following table presents a roll-forward of the Company's restructuring liability as of September 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

 
$
2,030

 
$
1,311

 
$
3,416

Restructuring charges (1)
—

 
1,976

 
130

 
2,106

Cash payments
(9
)
 
(3,340
)
 
(1,385
)
 
(4,734
)
Non-cash charges
(66
)
 
202

 
(20
)
 
116

Liability as of September 30, 2016
$
—

 
$
868

 
$
36

 
$
904

____________________________
(1)
The lease related charges for the nine months ended September 30, 2016, include $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured during to the completion of the acquisition of Entropic. The Company recorded a charge to the lease restructuring due to changes in market conditions. In the three months ended September 30, 2016, no offsets to restructuring charges related to Entropic leases are included.