BROADVISION INC | 2011 | FY | 3


 

 

             The following table summarizes the restructuring accrual activity recorded for the year ended December 31, 2011 (in thousands):

 

 

 

Facilities/

 

 

 

Excess

 

 

 

Assets

 

Accrual balances, December 31, 2010

 

 

534

 

Restructuring charges

 

 

810

 

Cash payments

 

 

(894)

 

Accrual balances, December 31, 2011

 

$

450

 

 

The facilities/excess assets accrual for each period includes future minimum lease payments, fees and expenses, net of estimated sublease income and planned Company occupancy, and related leasehold improvement amounts payable subsequent to the balance sheet date for which the provisions of ASC 420-10, as applicable, were satisfied. In determining estimated future sublease income, the following factors were considered, among others: current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, the status of negotiations with potential subtenants, and the location of the respective facilities.

 

The nature of the charges and credits in 2011 were as follows:

 

 

Facilities/excess assets – During 2011 our net restructuring charge of $810,000 consisted of lease payments and operating expenses in the amount of $451,000 for our headquarters in Redwood City, a $202,000 charge for the re-evaluation of future sublease rental income on our vacant office space in Redwood City and a $157,000 charge for the estimated  future operating expenses for our vacant office space in Redwood City.  The remaining term of the lease for the vacant office space in Redwood City is less than one year, and because of the limited remaining lease term we have re-evaluated the likelihood of subleasing the vacant office space.

 

The nature of the charges and credits in 2010 were as follows:

 

 

Facilities/excess assets – The net restructuring charge of $850,000 for year 2010 consists of a $607,000 charge resulting from a sublease income assumption adjustment made for our vacant Redwood City, California facilities and a $419,000 charge related to rent payments made by us resulting from our inability to sublease the facilities in the period, offset by the collection of $176,000 from our former subtenant from our New York City facilities.

 

As of December 31, 2011, we have remaining lease obligations of approximately $1.2 million.

 

As of December 31, 2011, the total restructuring accrual approximately $450,000 related to excess leased facilities (in thousands):

  

 

 

Current

 

 

Non-Current

 

 

Total

 

Excess Facilities

 

$

450

 

 

$

-

 

 

$

450

 

 

The following table summarizes the activity related to the restructuring plans and accounted for in accordance with ASC 420-10 (in thousands):

 

 

 

Accrued Restructuring Costs, Beginning

 

 

Amounts Charged to Restructuring Costs and Other

 

 

Amounts Reversed to Restructuring Costs and Other

 

 

Amounts Paid or Written Off

 

 

Accrued Restructuring Costs, Ending

 

Year Ended December 31, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease cancellations and commitments

 

534

 

 

810

 

 

 

 

 

(894

 

 

450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease cancellations and commitments

 

399

 

 

844

 

 

(235)

 

 

(474)

 

 

534

 


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