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Table of Contents
8. Other Current Liabilities
Other current liabilities consist of the following (in thousands):
Accrued escrow from acquisitions mainly relates to amounts held in escrow under the terms of certain of our acquisition agreements.
Contingent consideration liability represents the estimated fair value of additional consideration payable in connection with our acquisition of
Spooky Cool. Accrued compensation liability represents employee bonus and other payroll withholding expenses. Accrued restructuring liability
represents amounts payable related to our restructuring plans. Other current liabilities include various expenses that we accrue for transaction
taxes, customer deposits and accrued vendor expenses.
9. Restructuring
During the twelve months ended December 31, 2014, we recorded a total restructuring charge of $24.3 million which was classified within
our consolidated statement of operations as follows: Cost of Revenue $1.2 million, Research and Development $9.6 million, Sales and
Marketing $1.5 million and General and Administrative $12.0 million.
Q1 2014 Restructuring Plan
During the three months ended March 31, 2014, our board of directors authorized, and we implemented a restructuring plan that included a
reduction in work force and the closure of certain office and data center facilities as part of an overall plan to better align our cost structure
against market opportunities. As a result of this restructuring, we recorded a charge of $27.4 million in the twelve months ended December 31,
2014, which is included in operating expenses in our consolidated statement of operations. The $27.4 million restructuring charge in the twelve
months ended December 31, 2014 is comprised of $13.7 million of employee severance costs and $13.7 million related to the closure of certain
offices and data center facilities. This restructuring charge does not include the impact of $2.4 million of net stock-based expense reversals
associated with the net effect of forfeitures from employee terminations and the acceleration of unvested stock awards which were recorded in
stock-based expense. The remaining liability related to our Q1 2014 restructuring plan as of December 31, 2014 was $10.0 million and is
expected to be paid out over the next 2.0 years.
The following table presents the activity for the three months ended March 31, 2014, June 30, 2014, September 30, 2014 and the three and
twelve months ended December 31, 2014 related to the Q1 2014 restructuring plan (in thousands):
98
December 31,
2014
December 31,
2013
Accrued escrow for acquisitions
$
47,906
$
6,122
Contingent consideration liability
44,420
—
Accrued compensation liability
26,113
10,185
Accrued restructuring liability
7,214
6,751
Other current liabilities
38,497
45,808
Total other current liabilities
$
164,150
$
68,866
Three Months Ended
Twelve Months
Ended
December 31,
2014
March 31,
2014
June 30,
2014
September 30,
2014
December 31,
2014
Restructuring liability—beginning of period
$
—
$
21,036
$
14,006
$
12,795
$
—
Restructuring expense and adjustments
29,894
(2,314
)
308
(518
)
27,370
Cash payments
(8,858
)
(4,716
)
(1,519
)
(2,268
)
(17,361
)
Restructuring liability (Q1 2014 Plan)
—
end of period
$
21,036
$
14,006
$
12,795
$
10,009
$
10,009
(1)