Chegg 2015 Annual Report Download - page 129

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Table of Contents
90
The following table summarizes the activity related to the accrual for restructuring charges (in thousands):
Workforce
Reduction
Costs
Lease
Termination
and Other
Costs Total
Balance at January 1, 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Restructuring charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,885 2,983 4,868
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,830)(675)(2,505)
Write-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (317)(317)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 472 472
Balance at December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55 $ 2,463 $ 2,518
As of December 31, 2015, the $2.5 million liability was comprised of a short-term accrual of $2.2 million included
within accrued liabilities and a long-term accrual of $0.3 million included within other liabilities on the consolidated balance
sheet.
Note 17. Related-Party Transactions
Our Chief Executive Officer is a member of the Board of Directors of Adobe Systems Incorporated (Adobe). During the
years ended December 31, 2015, 2014 and 2013 we had purchases of $2.9 million, $0.9 million and $0.4 million, respectively.
We had $0.1 million, $1.0 million and $0.2 million in revenues in the years ended December 31, 2015, 2014 and 2013,
respectively, from Adobe. We had $0.4 million and $0.1 million in payables as of December 31, 2015 and 2014, respectively, to
Adobe.
One of our board members is also a member of the Board of Directors of Cengage Learning, Inc. (Cengage). During
the years ended December 31, 2015 and 2014 we had purchases of $11.5 million and $12.4 million, respectively. We had $0.1
million in revenues from Cengage in the year ended December 31, 2015 and no revenues in the year ended December 31, 2014.
We had an immaterial amount and $0.1 million in payables as of December 31, 2015 and 2014, respectively, to Cengage. We
had no outstanding accounts receivables as of December 31, 2015 and $0.1 million in outstanding accounts receivables from
Cengage as of December 31, 2014.
One of our board members was the Chief Executive Officer of Shutterfly Inc. (Shutterfly) until February 19, 2016.
During the year ended December 31, 2015, we had purchases of $1.1 million of products from Shutterfly. We had $0.1 million
in revenues from Shutterfly in the year ended December 31, 2015. We had an immaterial amount in outstanding accounts
receivables from Shutterfly as of December 31, 2015.
One of our board members is also a member of the Board of Directors of Synack Inc. (Synack). During the year ended
December 31, 2015, we had purchases of $0.1 million of services from Synack.
Transactions with the above related parties have been conducted on an arms length basis and the terms of our contracts
are consistent with our contracts with other independent parties.
Note 18. Employee Benefit Plan
We sponsor a 401(k) savings plan for eligible employees and their beneficiaries. Contributions by us are discretionary.
Participants may contribute, on a pretax basis, a percentage of their annual compensation, but not to exceed a maximum
contribution amount pursuant to Section 401(k) of the IRC. During 2015, 2014 and 2013, our matching contributions totaled
approximately $0.8 million, $0.8 million and $0.3 million, respectively
Note 19. Segment Information
Our chief operating decision-maker is our Chief Executive Officer who makes resource allocation decisions and reviews
financial information presented on a consolidated basis. Accordingly, we have determined that we have a single operating and
reporting segment and operating unit structure.
Product Information