Restructuring

9 Months Ended

Sep. 30, 2012

Restructuring and Related Activities [Abstract]

During 2011, in anticipation of the synergies associated with our acquisition of Adenyo, we initiated a restructuring plan in Europe in February 2011. This resulted in a reduction in workforce and a $4,840 restructuring charge during the nine months ended September 30, 2011 primarily related to involuntary termination benefits related to the elimination of redundant functions and positions. Specifically, restructuring activity in the third quarter of 2011 included the termination of the chief executive officer, chief financial officer, chief development officer, and general counsel. Similar restructuring activity continued throughout the remainder of 2011.

During the first quarter of 2012, as a part of the overall realignment of our strategic path, the exit from India and the Asia Pacific region and the decision to sell our France and Netherlands subsidiaries, we initiated another restructuring plan. As a result of this restructuring plan, we implemented a reduction in force and incurred costs related to involuntary termination benefits. A portion of the restructuring charges related to this action are included in discontinued operations and $2,505 is included in Restructuring on the condensed consolidated statement of operations for charges incurred in the U.S. As of September 30, 2012, restructuring charges of $29 that were committed to, but not yet paid, are included in Accrued compensation on the condensed consolidated balance sheets. These benefits were paid in October 2012.

The following table reconciles restructuring charges related to continuing operations with the associated liabilities:



	Involuntary Termination Benefits			Office Relocation Costs			Other Costs, Primary Lease Obligations			Total
Balance as of December 31, 2010	$	56		$	—		$	226		$	282
Restructuring charges	5,153			—			(196		)	4,957
Utilization	(4,336		)	—			(30		)	(4,366		)
Balance as of December 31, 2011	873			—			—			873
Restructuring charges	2,447			48			10			2,505
Utilization	(3,291		)	(48		)	(10		)	(3,349		)
Balance as of September 30, 2012	$	29		$	—		$	—		$	29

- Definition

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.

+ References+ Details

MOTRICITY INC 10-Q