Quarterly report pursuant to Section 13 or 15(d)

Restructuring charges

v2.4.0.8
Restructuring charges
9 Months Ended
Sep. 30, 2013
Restructuring charges  
Restructuring charges

(7)                                 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 “Security Networks Restructuring Plan”).   The Security Networks 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 Security Networks Restructuring Plan are recognized ratably over the future service period.  During the three and nine months ended September 30, 2013, the Company recorded $402,000 of restructuring charges related to employee termination benefits.

 

Additionally, in connection with Security Networks 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.

 

The following table provides the activity and balances of the Security Networks Restructuring Plan (amounts in thousands):

 

 

 

Nine months ended September 30, 2013

 

 

 

Opening
balance

 

Additions

 

Deductions

 

Other

 

Ending balance

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and retention

 

$

 

402

 

 

492

(a)

894

 

 

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