Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Nature of the Business | ' |
Nature of the Business |
Lionbridge Technologies, Inc. and its wholly owned subsidiaries (collectively, “Lionbridge” or the “Company”) provides a suite of globalization solutions to businesses in diverse end markets including technology, internet and media, manufacturing, mobile and telecommunications, life sciences, government, automotive, aerospace and retail. Lionbridge is a leading provider of language, content and testing solutions that enable clients to optimize, release, manage and maintain their technology applications and content globally. Lionbridge’s solutions include product and content globalization; interpretation services; application development and maintenance; software and hardware testing; product certification and competitive analysis. Lionbridge has three operating segments: Global Language and Content (“GLC”), Global Enterprise Solutions (“GES”, formerly referred to as Global Development and Testing, “GDT”) and Interpretation. As part of its GLC solutions, Lionbridge also provides global marketing services and creates and translates technical documentation for clients who market to and support customers in global markets. Lionbridge GLC solutions utilize the Company’s cloud-based technology platform and global service delivery model which make the translation, localization and authoring process more efficient for Lionbridge clients. Through its GES solutions, Lionbridge optimizes, tests and maintains IT applications to ensure the quality, interoperability, usability relevance and performance of clients’ software, consumer technology products, web sites and content. Lionbridge’s testing services, which are offered under the VeriTest brand, also include product certification and competitive analysis. Lionbridge has substantial domain experience developing, testing and maintaining applications in a cost-efficient, blended on-site and offshore model. As part of its GES offering, Lionbridge also provides specialized enterprise crowdsourcing services including search relevance testing, in-country testing for mobile devices, and data management solutions. Lionbridge provides interpretation services for government, business and healthcare organizations that require experienced linguists to facilitate communication. Lionbridge has its head office in the United States, with operations in Europe, Asia, India, North America, and Latin America. |
Lionbridge anticipates that its present cash and cash equivalents position and available financing under its Credit Agreement should provide adequate cash to fund its currently anticipated cash needs for the next twelve months and foreseeable future. Should the Company require additional funding, the Company’s access to capital markets as a means of funding any anticipated cash needs may be limited due to global economic market conditions. Moreover, the Company may not be able to access additional debt financing on the same or substantially similar terms as those in the Credit Agreement due to volatility and instability in worldwide credit markets. Management is committed to pursuing alternative financing arrangements or reducing expenditures as necessary to meet the Company’s cash requirements through 2014 if necessary. |
Out of Period Adjustments | ' |
Out of Period Adjustments |
During the year ended December 31, 2013, the Company identified certain immaterial out of period errors related to the calculation of revenue-related discounts, the calculation of the foreign exchange impact of a certain intercompany balance, time and materials revenue calculations for a certain project, previously unrecorded asset retirement obligations for certain office leases and the adjustment of uncertain tax liabilities. These corrections resulted in a $0.2 million decrease to revenue, a $0.4 million increase to operating expenses, a $0.2 million increase to other expense, net and a $0.6 million decrease to the provision for income taxes. These corrections represented an overstatement to revenue of $0.2 million for the year ended December 31, 2012, an understatement of operating expenses of $0.1 million and $0.3 million for the years ended December 31, 2012 and December 31, 2007, respectively, an understatement of other expense, net of $0.2 million for the year ended December 31, 2012 and an overstatement of the provision for income taxes of $0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2012, 2011 and prior periods, respectively. |
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During the year ended December 31, 2012, the Company identified certain immaterial out of period errors related to the calculation of commission expense and certain revenue adjustments. These corrections resulted in a $0.1 million decrease to revenue, representing an overstatement of revenue of less than $0.1 million for each of the years ended December 31, 2011 and December 31, 2010. The impact of the sales commission adjustment only related to interim periods within 2013 and did not impact prior financial years. |
During the year ended December 31, 2011, the Company identified certain immaterial out of period errors related to revenue recognition and certain gross receipt and property taxes for the period of fiscal years 2007 through 2010. These corrections resulted in a $0.3 million decrease to revenue and an immaterial impact to operating expenses, as the gross receipt and property tax items were offsetting within general and administrative expenses. These corrections represented an overstatement to revenue of $0.3 million for the year ended December 31, 2010. |
The Company has evaluated these errors and does not believe the amounts are material to any periods impacted and the correction of these errors is not material to the consolidated financial statements for the year ended December 31, 2013, 2012 and 2011 or any interim periods within these years. |
Principles of Consolidation | ' |
Principles of Consolidation |
The accompanying consolidated financial statements include the accounts of Lionbridge and its wholly owned subsidiaries from the effective date of their acquisition or formation. All inter-company accounts and transactions have been eliminated in the consolidated financial statements. |
Revenue Recognition | ' |
Revenue Recognition |
Lionbridge recognizes revenue as services are performed and amounts are earned in accordance with ASC 605-20, “Services” (“ASC 605-20”). Lionbridge considers amounts to be earned when (1) persuasive evidence of an arrangement has been obtained; (2) services are delivered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectability of those fees. |
Lionbridge’s revenue is recorded from the provision of services to customers for GLC, GES and Interpretation services which include content development, product and content globalization, interpretation, software and hardware testing, product certification and application development and maintenance. |
Content development, software and hardware testing, interpretation and application development and maintenance projects are normally time and expense priced contracts, and revenue is recognized using a time and expense basis over the period of performance, primarily based on labor costs incurred to date. |
Product and content globalization and product certification projects are generally fixed price contracts and revenue is recognized as services are delivered. Depending on specific contractual provisions and the nature of the deliverable, revenue is recognized (1) on a proportional performance model based on level of effort, (2) as milestones are achieved or (3) when final deliverables have been met. Amounts billed in excess of revenue recognized are recorded as deferred revenue. |
The delivery of Lionbridge’s GLC services involves and is dependent on the translation and development of content by subcontractors and in-house employees. As the time and cost to translate or produce each word of content within a project is relatively uniform, labor input is reflective of the delivery of the contracted service and an appropriate metric for the measurement of proportional performance in delivering such services. The use of a proportional performance assessment of service delivery requires significant judgment relative to estimating total contract costs, including assumptions relative to the length of time to complete the project, the nature and complexity of the work to be performed, anticipated increases in employee wages and prices for subcontractor services, and the availability of subcontractor services. When adjustments in estimated project costs are identified, anticipated losses, if any, are recognized in the period in which they are determined. |
Lionbridge’s GLC agreements with its customers may provide the customer with a fixed and limited time period following delivery during which Lionbridge will attempt to address any non-conformity to previously agreed upon objective specifications relating to the work, either in the form of a limited acceptance period or a post-delivery warranty period. Management believes recognition of revenue at the time the services are delivered is appropriate, because its obligations under such provisions are limited in time, limited in scope, and historically have not involved significant costs. In the future, if the post delivery acceptance or warranty provisions become more complex or include subjective acceptance criteria, Lionbridge may have to revise its revenue recognition policy accordingly, which could affect the timing of revenue recognition. |
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Lionbridge’s GLC segment includes Translation Workspace, the Company’s hosted proprietary, internet-architected translation memory application that simplifies translation management. This SaaS-based application is available to translators on a subscription basis. SaaS-based revenue is billed in advance and generally recognized over the subscription period. Incremental overage fees are recognized in the period incurred. |
Lionbridge occasionally provides integrated full-service offerings throughout a client’s product and content lifecycle, including GLC and GES services. Such multiple-element service offerings are governed by ASC 605-25, “Multiple-Element Arrangements” (“ASC 605-25”). For these arrangements where the GLC and GES services have independent value to the customer, and there is evidence of selling price for each service, the combined service arrangement is bifurcated into separate units for accounting treatment. In instances where it is not possible to bifurcate a project, direct and incremental costs attributable to each component are deferred and recognized together with the service revenue upon delivery. The determination of selling price requires the use of significant judgment. Lionbridge determines the selling price of service revenues based upon its recent pricing for those services when sold separately and/or prevailing market rates for similar services. |
Revenue includes reimbursement of travel, out-of-pocket expenses, certain facilities and hardware costs with equivalent amounts of expense recorded in cost of revenue. |
Estimates for incentive rebates and other allowances are recorded as a reduction of revenues in the period the related revenues are recorded. These estimates are based upon contracted terms, historical experience and information currently available to management with respect to business and economic trends. Revisions of these estimates are recorded in the period in which the facts that give rise to the revision become known. |
Advertising Costs | ' |
Advertising Costs |
Advertising costs are included in sales and marketing expenses and are expensed as incurred. Advertising costs were approximately $0.3 million, $0.4 million and $0.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Research and Development Costs | ' |
Research and Development Costs |
Research and development costs are expensed as incurred and include salaries and associated employee benefits and third-party contractor expenses unless capitalized as costs incurred during the application development stage of software developed for internal use. These costs relate primarily to the Company’s web-based hosted language management technology platform used in the globalization process and its globalization management system. |
Foreign Currency Translation | ' |
Foreign Currency Translation |
The functional currency for each of Lionbridge’s foreign operations is predominantly the local currency of the country in which those operations are based. Revenues and expenses of foreign operations are translated into U.S. Dollars at the average rates of exchange during the year. Assets and liabilities of foreign operations are translated into U.S. Dollars at year-end rates of exchange. The Company has recorded translation gains of $0.8 million and $1.1 million for the years ended December 31, 2013 and December 31, 2012, respectively, and a translation loss of $0.5 million for the year ended December 31, 2011, in accumulated other comprehensive income, which is a component of stockholders’ equity. These unrealized gains and losses are primarily attributable to the fluctuation in value between the U.S. Dollar and the Euro. For the purpose of disclosure of comprehensive income (loss), Lionbridge does not record tax provisions or benefits for the net changes in foreign currency translation adjustments, as Lionbridge intends to permanently reinvest undistributed earnings in its foreign subsidiaries. |
Realized and unrealized foreign currency transaction gains or losses, arising from exchange rate fluctuations on balances denominated in currencies other than the functional currencies, are included in “Other expense, net” in the consolidated statements of operations and resulted in losses of $0.9 million, $1.1 million and $1.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Financial Instruments | ' |
Financial Instruments |
Lionbridge may enter into foreign currency forward contracts with commercial banks to hedge exposure to foreign currency assets and liabilities recorded on its balance sheet and utilizes interest rate swaps to manage interest rate risk. Changes in the fair value of foreign exchange forward contracts are recorded in the Company’s earnings. The Company had no foreign exchange forward contracts outstanding at December 31, 2013 and 2012. |
Lionbridge does not hold or issue financial instruments for trading or speculative purposes. |
Cash Equivalents | ' |
Cash Equivalents |
Cash and cash equivalents include all highly liquid investments with a maturity of ninety days or less at the time of purchase. Cash equivalents consist primarily of time deposits and are stated at cost plus accrued interest. |
Unbilled Receivables and Deferred Revenue | ' |
Unbilled Receivables and Deferred Revenue |
Unbilled receivables represent revenue not yet billed. Unbilled receivables are calculated for each individual project based on the proportional delivery of services at the balance sheet date. Billing of amounts in unbilled receivables occurs according to customer-agreed payment schedules or upon completion of specified project milestones. All of Lionbridge’s projects in unbilled receivables are expected to be billed and collected within one year. |
Deferred revenue represents billings in excess of revenue recognized for work. Deferred revenue is calculated for each individual project and constitutes a performance obligation for which revenue will be recognized as services are delivered. |
Property and Equipment | ' |
Property and Equipment |
Property and equipment are stated at cost less accumulated depreciation and amortization and any recognized impairment loss. Additions and improvements that extend the useful life of an asset are capitalized; maintenance and repairs are expensed as incurred. Upon retirement or other disposition, the cost and related accumulated depreciation of the assets are removed from the accounts and the resulting gain or loss is reflected in the determination of net income or loss. |
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In accordance with ASC 350-40, “Internal Use Software” (“ASC 350-40”), the Company capitalizes costs incurred during the application development stage, which include costs of designing the software configuration and interfaces, coding, installation and testing. Costs incurred during the preliminary project stage along with post-implementation stages of internal use computer software are generally expensed as incurred. Capitalized development costs are amortized over the estimated life of the software, using the straight-line method, beginning with the date that an asset is ready for its intended use. The capitalization and ongoing assessment of development costs requires considerable judgment by management, including, but not limited to, technological feasibility and estimated economic life. Capitalized software is included in “Property and equipment, net” on the consolidated balance sheets. |
The Company capitalized costs of $2.8 million, $3.7 million, and $4.1 million in 2013, 2012 and 2011, respectively, which primarily related to the development of internal financial systems and enhancements of internal products. Of such total capitalized costs, $2.8 million, $2.4 million, and $4.1 million related to costs associated with software developed for internal use that was placed into service during 2013, 2012 and 2011, respectively. The remaining $1.3 million for 2012 related to costs associated with the development of software for internal use that was not yet placed into service as of December 31, 2012. There were no costs associated with the development of software for internal use that was not yet placed into service as of December 31, 2013 and December 31, 2011. The capitalized costs placed in service during 2013, 2012 and 2011 are being amortized over two to seven years. Amortization expenses for costs incurred to develop computer software for internal use totaled $2.1 million, $2.2 million and $2.3 million during 2013, 2012 and 2011, respectively, and are included in “Depreciation and amortization” in the consolidated statements of operations. |
The cost of property and equipment is depreciated over the estimated useful lives of the assets using the straight-line method, based upon the following asset lives: |
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Computer software and equipment | | 1 to 7 years | | |
Building and building improvements | | 5 to 40 years | | |
Furniture and office equipment | | 3 to 10 years | | |
Leasehold improvements | | Shorter of remaining lease term or useful life of asset | | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets |
Lionbridge assesses the impairment of goodwill and acquisition-related intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such events or conditions could include an economic downturn in the industries to which Lionbridge provides services; increased competition; an increase in operating or other costs; additional volatility in international currencies; the pace of technological improvements; or other information regarding Lionbridge’s market value, such as a reduction in stock price to a price near or below the book value of the Company for an extended period of time. When Lionbridge determines that the carrying value of goodwill may not be recoverable based upon one or more of these indicators of impairment, the Company initially assesses any impairment using fair value measurements based on projected discounted cash flow valuation models and the market approach. In addition, in accordance with ASC 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill is reviewed for impairment on an annual basis. At December 31, 2013 and 2012, the Company performed its annual test of goodwill to determine if an impairment existed. This test determined that each reporting unit’s fair value substantially exceeded the carrying value of the net assets of each respective reporting unit, using projected discounted cash flow modeling. As a result, no impairment was recorded for either year. |
The Company evaluates whether there has been an impairment in the carrying value of its long-lived assets in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), if circumstances indicate that a possible impairment may exist. An impairment in the carrying value of an asset is assessed when the undiscounted expected future operating cash flows derived from the asset grouping are less than its carrying value. If it is determined that the asset group is impaired then it is written down to its estimated fair value. Factors that could lead to an impairment of its long-lived assets include a worsening in customer attrition rates compared to historical attrition rates, lower than initially anticipated cash flows associated with customer relationships, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for our overall business, identification of other impaired assets within a reporting unit, disposition of a significant portion of an operating segment, significant negative industry or economic trends, significant decline in the Company’s stock price for a sustained period and a decline in our market capitalization relative to net book value. |
Acquisition-related intangible assets arose from acquisitions made prior to 2011 and the acquisitions of Productive Resources, LLC (“PRI”) in June 2012, Virtual Solutions, Inc. (“VSI”) in November 2012 and E5 Global Holdings, Inc. (“E5”) in October 2013 and consist of the following, which have been or are being amortized on a straight-line basis over the following estimated useful lives, except for the customer relationships related to previous acquisitions, of which a portion is being amortized using an economic consumption method: |
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| | Estimated | |
Useful |
Life |
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Acquisitions previous to 2011: | | | | |
Customer relationships | | | 3 to 12 years | |
Customer contracts | | | 3 to 5 years | |
Internally developed software | | | 1 to 4 years | |
PRI, VSI & E5: | | | | |
Developed technology | | | 5 years | |
Core technology | | | 10 years | |
Customer relationships | | | 2 to 12 years | |
Non-compete agreements | | | 1 to 5 years | |
Trademark | | | 1 to 2 years | |
Income Taxes | ' |
Income Taxes |
Current income taxes are recorded based on statutory obligations for the current operating period for the various countries in which the Company has operations. |
Deferred income taxes are generally recognized for the difference between the financial statement and tax basis of assets and liabilities (temporary differences) multiplied by the enacted tax rates in effect in the years in which the temporary differences are expected to reverse. A valuation allowance is provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. |
Net Income (Loss) per Share | ' |
Net Income (Loss) per Share |
Basic earnings per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. For purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding and the number of dilutive common stock equivalents such as stock options, unvested restricted stock and warrants, as determined using the treasury stock method. |
Accounting for Stock-Based Compensation | ' |
Accounting for Stock-Based Compensation |
The Company recognizes expense for stock options, performance-based restricted stock awards and time-based restricted stock awards pursuant to ASC 718, “Compensation—Stock Compensation” (“ASC 718”), which requires recognition of stock-based compensation expense in the statement of operations over the vesting period based on the fair value of the award at the grant date. |
The Company has stock-based employee compensation plans which are described more fully in Note 8 to these consolidated financial statements. |
Use of Estimates | ' |
Use of Estimates |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, actuarial valuations and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Estimates are used when accounting for the collectability of receivables, calculating revenue based on the proportional delivery of services, and valuing intangible assets, deferred tax assets, net assets of businesses acquired and accrued liabilities associated with compensation. Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. However, if different assumptions or conditions were to prevail, the results could be materially different from the amounts recorded. |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) |
Total comprehensive income (loss) consists of net income (loss), the net change in the funded status of defined benefit postretirement plans and the net change in foreign currency translation adjustment. |
Concentrations of Credit Risk and Significant Customers | ' |
Concentrations of Credit Risk and Significant Customers |
Financial instruments which potentially subject Lionbridge to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents with several investment grade financial institutions. Investments consist of time deposits with maturities less than 30 days. Concentrations of credit risk with respect to trade accounts receivable are limited due to the dispersion of customers across different industries and geographic regions. Hewlett Packard accounted for approximately 11% of consolidated accounts receivable at December 31, 2013. Hewlett Packard and Microsoft accounted for approximately 12% and 10%, respectively of consolidated accounts receivable at December 31, 2012. No other client individually accounted for more than 10% of consolidated accounts receivable at December 31, 2013 or 2012. Lionbridge generally does not require collateral or other security against trade receivable balances; however, it maintains reserves for potential credit losses and such losses have historically been within management’s expectations. |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments |
Financial instruments are carried in the consolidated financial statements at amounts that approximate fair value at December 31, 2013 and 2012. Fair values are based on market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. The Company recognizes all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC 815, “Derivatives and Hedging—Net Settlement”. The Company records changes in the fair value of derivative instruments in earnings unless deferred hedge accounting criteria is met. For derivative instruments designated as fair value hedges, the Company records the changes in fair value of both the derivative instrument and the hedged item in earnings. |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). This amendment requires disclosing and reconciling gross and net amounts for financial instruments that are offset in the balance sheet, and amounts for financial instruments that are subject to master netting arrangements and other similar clearing and repurchase arrangements. In January 2013, the FASB issued Accounting Standards Update 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”), which clarifies the scope of the offsetting disclosures of ASU 2011-11. ASU 2011-11 and ASU 2013-01 are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company adopted ASU 2011-11 and ASU 2013-01 on January 1, 2013. The adoption of ASU 2011-11 and ASU 2013-01 did not have a material impact on the Company’s disclosures. |
In June 2011, the FASB issued Accounting Standards Update No. 2011-05 “Comprehensive Income (Topic 220): Presentation of Comprehensive Income” (“ASU 2011-05”), which prohibits the presentation of other comprehensive income in the statement of changes in stockholders’ equity and requires the presentation of net income, items of other comprehensive income and total comprehensive income in one continuous statement or two separate but consecutive statements. In December 2011, the FASB issued Accounting Standards Update No. 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), which deferred the requirement to present reclassification adjustments for each component of other comprehensive income on the face of the financial statements mandated by ASU 2011-05. In February 2013, the FASB issued Accounting Standards Update No. 2013-02 “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” (“ASU 2013-02”), which requires disclosures of the amounts reclassified out of accumulated other comprehensive income by component, including the respective line items of net income if the amount is required to be reclassified to net income in its entirety in the same reporting period. ASU 2011-05 and 2011-12 were effective and adopted by the Company in the first quarter of 2012 and ASU 2013-02 will be effective for the Company in the first quarter of 2013. The ASUs have impacted and will impact the Company’s financial statement presentation, but otherwise did not and will not impact its consolidated financial statements. |
Exit or Disposal Cost Obligations | ' |
Lionbridge recorded $3.5 million of restructuring charges in the year ended December 31, 2013. The $3.5 million of restructuring charges recorded in 2013 included $3.2 million for workforce reductions in Europe, the Americas and Asia consisting of 34 technical staff, 18 administrative staff and 9 sales staff, and $0.3 million of additional costs recorded for a previously vacated facility in order to reflect changes in initial estimates of a sublease arrangement due to current economic conditions, recorded pursuant to the guidance of ASC 420, “Exit or Disposal Cost Obligations” (“ASC 420”) and ASC 712, “Compensation—Nonretirement Postemployment Benefits” (“ASC 712”), and related literature. All these charges are related to the GLC segment. The Company made $4.5 million of cash payments in 2013 all of which related to the GLC operating segments. |
Lionbridge recorded $3.6 million of restructuring charges in the year ended December 31, 2012. The $3.6 million of restructuring charges recorded in 2012 included $3.3 million for workforce reductions in Europe, the Americas and Asia consisting of 35 technical staff and 4 administrative staff, $0.3 million of additional costs recorded for a previously vacated facility in order to reflect changes in initial estimates of a sublease arrangement due to current economic conditions, recorded pursuant to the guidance of ASC 420, “Exit or Disposal Cost Obligations” (“ASC 420”) and ASC 712, “Compensation—Nonretirement Postemployment Benefits” (“ASC 712”), and related literature. All these charges are related to the Company’s GLC segment. The Company made $2.7 million of cash payments in 2012 all of which related to the GLC operating segment. |
Lionbridge recorded $3.4 million of restructuring charges in the year ended December 31, 2011. The $3.4 million included $2.8 million for workforce reductions in Europe, the Americas and Asia consisting of 53 technical staff, 7 administrative staff and 1 sales staff, $0.2 million recorded for vacated facilities and associated site closure costs, $0.4 million of additional costs recorded for a previously vacated facility in order to reflect changes in initial estimates of a sublease arrangement due to current economic conditions, recorded pursuant to the guidance of ASC 420, and ASC 712, and related literature. Of these charges, $3.4 million related to the Company’s GLC segment and $9,000 related to the Interpretation segment. The Company made $7.1 million of cash payments related to restructuring in 2011, $7.1 million, $8,000 and $9,000 related to the GLC, GES and Interpretation segments, respectively. |