The following table summarizes the restructuring accrual activity recorded for the year ended December 31, 2011 (in thousands):
|
|
|
Facilities/ |
| |
|
|
|
Excess |
| |
|
|
|
Assets |
| |
|
Accrual balances, December 31, 2010 |
|
|
534 |
|
|
Restructuring charges |
|
|
810 |
|
|
Cash payments |
|
|
(894) |
|
|
Accrual balances, December 31, 2011 |
|
$ |
450 |
|
The facilities/excess assets accrual for each period includes future minimum lease payments, fees and expenses, net of estimated sublease income and planned Company occupancy, and related leasehold improvement amounts payable subsequent to the balance sheet date for which the provisions of ASC 420-10, as applicable, were satisfied. In determining estimated future sublease income, the following factors were considered, among others: current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, the status of negotiations with potential subtenants, and the location of the respective facilities.
The nature of the charges and credits in 2011 were as follows:
|
|
• |
Facilities/excess assets – During 2011 our net restructuring charge of $810,000 consisted of lease payments and operating expenses in the amount of $451,000 for our headquarters in Redwood City, a $202,000 charge for the re-evaluation of future sublease rental income on our vacant office space in Redwood City and a $157,000 charge for the estimated future operating expenses for our vacant office space in Redwood City. The remaining term of the lease for the vacant office space in Redwood City is less than one year, and because of the limited remaining lease term we have re-evaluated the likelihood of subleasing the vacant office space. |
The nature of the charges and credits in 2010 were as follows:
|
|
• |
Facilities/excess assets – The net restructuring charge of $850,000 for year 2010 consists of a $607,000 charge resulting from a sublease income assumption adjustment made for our vacant Redwood City, California facilities and a $419,000 charge related to rent payments made by us resulting from our inability to sublease the facilities in the period, offset by the collection of $176,000 from our former subtenant from our New York City facilities. |
As of December 31, 2011, we have remaining lease obligations of approximately $1.2 million.
As of December 31, 2011, the total restructuring accrual approximately $450,000 related to excess leased facilities (in thousands):
|
|
|
Current |
|
|
Non-Current |
|
|
Total |
| |||
|
Excess Facilities |
|
$ |
450 |
|
|
$ |
- |
|
|
$ |
450 |
|
The following table summarizes the activity related to the restructuring plans and accounted for in accordance with ASC 420-10 (in thousands):
|
|
|
Accrued Restructuring Costs, Beginning |
|
|
Amounts Charged to Restructuring Costs and Other |
|
|
Amounts Reversed to Restructuring Costs and Other |
|
|
Amounts Paid or Written Off |
|
|
Accrued Restructuring Costs, Ending |
| |||||
|
Year Ended December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease cancellations and commitments |
|
$ |
534 |
|
|
$ |
810 |
|
|
$ |
|
|
|
$ |
(894 |
|
|
$ |
450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2010: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease cancellations and commitments |
|
$ |
399 |
|
|
$ |
844 |
|
|
$ |
(235) |
|
|
$ |
(474) |
|
|
$ |
534 |
|