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Lease Exit Costs
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12 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2014
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||
| Lease Exit Costs | Lease Exit Costs Bannockburn Lease In September 2014, the Company executed a plan to exit the space it had leased in Bannockburn, IL. As a result of this exit, the Company recorded a charge and corresponding lease loss accrual equal to the present value of the amount by which the net future lease obligations exceed the remaining rent-related deferred balances. As a result of this exit, the Company recorded approximately $5.7 million of lease loss expense during 2014 in SG&A expense in the consolidated statements of operations. As of December 31, 2014, the Company had an accrual for the present value of future amounts due through the end of the lease term of approximately $6.9 million, which is included in accrued expenses and other current liabilities in the consolidated balance sheets. Based on the Company's current assumptions as of December 31, 2014, we expect that cash outflows totaling $7.0 million will occur through July 2015. The exit from the space in Bannockburn, IL did not involve any employee termination costs. Maryland Lease In August 2013, the Company executed a plan to exit a portion of space it had leased in Maryland and entered into a sub-lease agreement with a third-party tenant that was coterminous with the Company's remaining lease term. As a result of this exit, the Company recorded an approximately $5.6 million charge in SG&A expense and corresponding lease loss accrual equal to the present value of the amount by which the net future lease obligations exceed the remaining rent-related deferred balances. The net future lease obligations were calculated by taking the remaining contractual rent obligation less the amount the Company will receive from the sub-lease agreement and recorded at its present value based on the Company's credit adjusted risk-free interest rate. As of December 31, 2014, the Company had an accrual of approximately $5.2 million related to lease exit costs included in accrued expenses and other current liabilities in the consolidated balance sheets. A roll forward of the lease exit cost accrual is presented below (in thousands):
Based on the Company's current assumptions as of December 31, 2014, we expect that cash outflows totaling $6.1 million will occur through June 2022. |
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