Restructuring Costs

9 Months Ended

Sep. 30, 2019

Restructuring And Related Activities [Abstract]

Restructuring Costs

12. Restructuring costs

In May 2019, we approved a severance plan that included a workforce elimination of approximately 38 positions in the U.S. and internationally. In October 2019, we determined to close our Taiwan branch office by December 31, 2019, which will result in elimination of approximately 17 additional positions. Of these 55 total positions, 34 positions had been eliminated as of September 30, 2019. This involuntary termination benefit plan was done in order to reduce go-forward operating costs and re-align our go-forward business model to support future business initiatives. The costs associated with these actions consist primarily of charges for restructuring costs related to severance and benefits, and a non-cash impairment charge related to certain software development cost assets. We expect to incur aggregate restructuring charges of approximately $2.1 million associated with these actions. During the third quarter and the first nine months of 2019, we incurred $0.3 million and $1.6 million, respectively, in charges for restructuring costs under this plan. For the nine months ended September 30, 2019, $0.8 million in restructuring costs were paid. The ending balance for accrued restructuring charges is $0.5 million as of September 30, 2019 and is included as part of accrued compensation on the consolidated balance sheets.

Summary of Restructuring Costs

The types of charges for restructuring costs for the three and nine months ended September 30, 2019 and September 30, 2018 were (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Severance and benefits	$	253	$	—	$	1,254	$	—
Asset impairment charge (see Note 11)		—		—		375		—
Total	$	253	$	—	$	1,629	$	—

Accrued Restructuring Costs

The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousand):

	Three Months Ended September 30,
	2019			2018
Balance as of June 30, 2019	$	661		$	—
Restructuring costs		253			—
Adjustments of prior estimates		—			—
Non-cash asset impairment charge		—			—
Cash payments		(442	)		—
Balance as of September 30, 2019	$	472		$	—
	Nine Months Ended September 30,
	2019			2018
Balance as of December 31, 2018	$	—		$	—
Restructuring costs		1,629			—
Adjustments of prior estimates		—			—
Non-cash asset impairment charge		(375	)		—
Cash payments		(782	)		—
Balance as of September 30, 2019	$	472		$	—
	As of September 30,
Estimated timing of future payments:	2019			2018
Remainder of 2019	$	310		$	—
2020		162			—
Total stock-based compensation expense	$	472		$	—