Restatement and Other
 12 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]  
Restatement and Other
Restatement and Other
In the first quarter of 2013, the Company determined that it would restate its previously issued consolidated financial statements (the "Restatement"). The Restatement corrected accounting errors relating to timing of recognition of net services revenue, the presentation of net services revenue and cost of services and certain capitalized costs for internal use software, goodwill, income taxes and other miscellaneous items. The Company completed the Restatement in December 2014. In connection with the Restatement, the Company spent additional time and expended additional resources redesigning its accounting processes and internal controls over financial reporting.
Restatement and other costs are comprised of reorganization-related and Restatement expenses and certain other costs. The Company incurred Restatement and other costs of $9.3 million, $86.8 million and $34.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.



Note 7. Restatement and Other (continued)
Restatement
The Company incurred Restatement costs of $2.5 million, $57.3 million and $23.1 million during the years ending December 31, 2015, 2014 and 2013, respectively. These costs were due to legal, accounting and consulting costs incurred related to the Restatement.
Reorganization-related
The Company incurred reorganization-related costs of $3.2 million, $22.1 million and $5.2 million during the years ending December 31, 2015, 2014 and 2013, respectively.
In 2013, the Company initiated a restructuring plan (the "Restructuring Plan") consisting of reductions in workforce in order to align its organizational structure and resources to better serve its customers. The plan consisted of two separate staff reductions that occurred in 2013. Pursuant to the Restructuring Plan, the Company incurred $3.9 million for severance and other costs during the year ended December 31, 2013. In addition, the Company incurred $1.2 million non-cash expense related to share-based compensation for modification of existing option agreements for affected employees.
In January 2014, the Company continued and revised the Restructuring Plan to include additional reductions to its workforce in certain corporate, administrative and management functions. The Restructuring Plan consists of severance payments, medical and dental benefits, outplacement job training for certain U.S.-based employees and relocation costs. In connection with the Restructuring Plan, the Company incurred $22.1 million in pretax restructuring charges during the year ended December 31, 2014, consisting of $17.1 million in severance and employee benefits, including $7.9 million of non-cash expense related to share-based compensation for modification of existing options for affected employees and $5.0 million in facilities and other related expenses. For the year ended December 31, 2015, the Company incurred pretax restructuring charges of $3.2 million, consisting of $0.6 million in severance and employee benefits and $2.6 million in facilities related expenses.
The Company has included $0.3 million and $2.2 million in accrued compensation and benefits and other accrued expenses in the accompanying consolidated balance sheet at December 31, 2015, respectively, and has included $3.3 million and $0.2 million in accrued compensation and benefits and other accrued expenses in the accompanying consolidated balance sheet at December 31, 2014, respectively,
The Company's reorganization activity was as follows (in thousands):
 
 
Severance and Employee Benefits
 
Facilities and Other Costs
 
Total
Reorganization liability at January 1, 2013
$
—

 
$
—

 
$
—

Restructuring charges
5,173

 
—

 
5,173

Cash payments
(2,806
)
 
—

 
(2,806
)
Non-cash charges
(1,224
)
 
—

 
(1,224
)
Reorganization liability at December 31, 2013
$
1,143

 
$
—

 
$
1,143

Restructuring charges
17,108

 
5,010

 
22,118

Cash payments
(7,050
)
 
(3,482
)
 
(10,532
)
Non-cash charges
(7,905
)
 
(1,370
)
 
(9,275
)
Reorganization liability at December 31, 2014
$
3,296

 
$
158

 
$
3,454

Restructuring charges
596

 
2,564

 
3,160

Cash payments
(3,575
)
 
(546
)
 
(4,121
)
Reorganization liability at December 31, 2015
$
317

 
$
2,176

 
$
2,493


Note 7. Restatement and Other (continued)
Other
During the years ended December 31, 2015, 2014 and 2013, the Company incurred other costs of $3.6 million, $7.4 million and $5.7 million, respectively. For the year ended December 31, 2015, these costs included $3.8 million in costs related to the exploration of potential strategic alternatives, offset by a decrease of $0.2 million in employment tax expense relating to prior years.
For the year ended December 31, 2014, such costs included $6.5 million in other costs associated with its transformation office, which was created to provide continuity and cross functional accountability associated with the continued execution of the Company's turnaround plan during the period subsequent to Stephen Schuckenbrock's resignation as our Chief Executive Officer and prior to the appointment of Dr. Emad Rizk as our Chief Executive Officer. In addition, the Company incurred other non-recurring costs in 2014 of $0.9 million in additional employment tax expense relating to prior years.
In 2013, the Company incurred costs for litigation, primarily related to the lawsuit filed against the Company in January 2012 by the Minnesota Attorney General that is described in Note 10, Commitments and Contingencies, of $3.3 million. In 2013, the Company accrued $2.3 million for the settlement of certain claims by former shareholders of SDI Acquisition, Inc. (a wholly owned subsidiary of Company).