Work Force Reduction and CEO Transition |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Work Force Reduction and CEO Transition | WORK FORCE REDUCTION AND CEO TRANSITION Work Force Reduction On October 18, 2016, we announced a corporate reduction in force and a realignment of effort that resulted in the elimination of 62 positions at our Colorado Springs headquarters. As a result, we recognized $1.5 million in severance expense for the year ended December 31, 2016. These expenses are included in selling, general and administrative expenses for the year ended December 31, 2016. CEO Transition On November 30, 2016, Kenneth Hunzeker, our former CEO, notified us of his intention to retire. On December 7, 2016, the Company and Mr. Hunzeker entered into a Separation Agreement. Pursuant to the Separation Agreement, the Company and Mr. Hunzeker agreed that his last day of active full-time employment with the Company was December 5, 2016. We agreed to continue to pay Mr. Hunzeker his present salary for the period from December 6, 2016 through December 5, 2018 (the Severance Pay Period). In addition, Mr. Hunzeker was paid a lump sum payment of $10,000 to assist with relocation expenses and is eligible to continue participation in the Company’s medical, dental and vision plans through the Severance Pay Period. Mr. Hunzeker is eligible for consideration for a bonus for 2016 payable in 2017, and the bonus amount will be calculated based on the performance payout factor that is applied to the 2016 bonus pool, as determined by the Compensation and Personnel Committee of the Board of Directors. As a result, we recognized $1.2 million in severance expense for the year ended December 31, 2016. A portion of the severance payments have been paid out pursuant to agreements entered into with affected employees, and we do not expect to incur significant additional charges related to these activities in future periods. The severance and related benefit costs for the year ended December 31, 2016 are summarized in the table below:
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