|12 Months Ended|
Dec. 31, 2016
|Restructuring and Related Activities [Abstract]|
During 2016, the Company approved and implemented a plan to restructure its internal operations including exiting certain leases and terminating 24 employees. Pursuant to the restructuring plan, the Company ceased use of certain offices. Accordingly, the Company recognized lease impairment charges of $0.2 million based on the adjustment to the net present value of the remaining lease obligations on the cease use date. The Company also recorded leasehold improvements and other property write offs of $0.1 million in connection with the office closures. The Company recognized associated employee separation charges of approximately $1.0 million in the year ended December 31, 2016 related to these terminations.
In connection with the Company's acquisition of Entropic, the Company approved and implemented a restructuring plan to address matters primarily relating to the integration of the Company and Entropic businesses. In connection with this plan, the Company terminated the employment of 87 Entropic employees during the year ended December 31, 2015. The Company recognized associated employee separation charges of approximately $5.5 million in the year ended December 31, 2015 related to these terminations. Included in these employee separation charges is $1.5 million of stock compensation for accelerated stock options and RSUs vesting due to double trigger change of control agreements and other special agreements in effect with certain Entropic employees.
Additionally, in connection with the restructuring plan, the Company ceased use of the majority of Entropic's former headquarters. Accordingly, the Company recognized lease impairment charges of $2.7 million in the year ended December 31, 2015 based on the net present value of the remaining lease obligation on the cease use date. The Company also recorded impairment charges of $5.2 million in the year ended December 31, 2015 related to leasehold improvements on the unused premises. During the year ended December 31, 2016, the Company recorded additional lease impairment charges of $2.0 million. This included adjustments to the estimates of net present value of the remaining lease obligation for actual sublease income and period costs associated with the Entropic lease, including commissions to brokers involved in subleasing property. Total sublease income for the year ended December 31, 2016 was approximately $1.3 million and related to leased facilities the Company ceased using as part of the Entropic restructuring plan.
The following table presents the activity related to the plans, which is included in restructuring charges in the consolidated statements of operations:
The Company does not expect to incur additional material costs related to these restructuring plans.
The following table presents a roll-forward of the Company's restructuring liability for the years ended December 31, 2016 and 2015, which is included in accrued expenses and other current liabilities in the consolidated balance sheets:
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/presentationRef