Annual report pursuant to Section 13 and 15(d)

Restructuring Charges

v2.4.0.8
Restructuring Charges
12 Months Ended
Dec. 31, 2013
Restructuring Charges  
Restructuring Charges

(12)  Restructuring Charges

 

In connection with the Security Networks Acquisition, management approved a restructuring plan to transition Security Networks operations in West Palm Beach and Kissimmee, Florida to Dallas, Texas (the “2013 Restructuring Plan”).  The 2013 Restructuring Plan provides certain employees with a severance package that entitles them to benefits upon completion of the transition in 2014.  Severance costs related to the 2013 Restructuring Plan are recognized ratably over the future service period.  During the year ended December 31, 2013, the Company recorded $1,111,000 of restructuring charges related to employee termination benefits.

 

Additionally, in connection with the 2013 Restructuring Plan, the Company allocated approximately $492,000 of the Security Networks Purchase Price to accrued restructuring in relation to the Security Networks’ severance agreement entered into with its former Chief Executive Officer.

 

There were no restructuring charges recorded for the years ended December 31, 2012 and 2011.

 

The following table provides the activity and balances of the Company’s restructuring plans (amounts in thousands):

 

 

 

Year ended December 31, 2013

 

2013 Restructuring Plan

 

Opening
balance

 

Additions

 

Deductions (b)

 

Other

 

Ending balance

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and retention

 

$

 

1,111

 

(33

)

492

(a)

1,570

 

 

(a)          Amount was recorded upon the acquisition of Security Networks.

(b)         Represents cash payments.