5. Corporate Restructuring Costs

In May 2018, we announced that we will open a headquarters office in Newport Beach, California, consolidate certain corporate administrative functions into our existing office in Columbus, Ohio, and close our existing headquarters offices in Denver, Colorado, as well as additional corporate offices in New York, New York. All affected employees were either offered an opportunity to continue in the new organization or were offered a severance package. As a result, we expect to incur total corporate restructuring costs into 2019 aggregating approximately $44,000 to $58,000, including (i) employee severance and other employee transition costs of approximately $8,000 to $11,000; (ii) recruitment and relocation costs of approximately $7,000 to $9,000; (iii) lease termination and other office closure costs of approximately $21,000 to $30,000; and (iv) third-party and other costs of approximately $6,000. We also expect incremental stock-based compensation costs of approximately $2,000 associated with the restructuring. See Note. 8 “Stock-based Compensation” for a discussion of stock-based compensation expense related to the restructuring.

We record severance as a one-time termination benefit and recognize the expense ratably over the employees’ required future service period. We record a liability for lease termination costs consisting of the net present value of remaining lease obligations, net of estimated sublease rentals that could be reasonably obtained, at the date we cease using a property, and measure fair value using Level 3 inputs (unobservable inputs). All other costs, including other employee transition costs, recruitment and relocation costs, other office closure costs, and third-party costs, are recognized in the period incurred.

The following is a summary of the restructuring costs recorded:



	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
Employee severance and other employee transition costs(1)	$	4,100	$	-	$	4,593	$	-
Recruitment and relocation costs(1)		3,188		-		3,395		-
Lease termination and other office closure costs(2)		-		-		15,196		-
Third-party and other costs(1)		2,460		-		5,660		-
		9,748		-		28,844		-
Adjustments for office related assets(2)		(1,076)		-		27		-
Stock-based compensation(1)		6,087		-		(339)		-
Total Restructuring costs	$	14,759	$	-	$	28,532	$	-

(1) Recorded in general and administrative expenses on the condensed consolidated statement of income.

(2) Recorded in impairment, closure costs, and asset disposals on the condensed consolidated statement of income.

The following table summarizes the changes in our restructuring liability which are included in accrued liabilities on the condensed consolidated balance sheet:



	Balance December 31, 2017		Charges		Payments		Balance September 30, 2018
Employee severance and other employee transition costs	$	-	$	4,593	$	(339)	$	4,254
Recruitment and relocation costs		-		3,395		(3,189)		206
Lease termination and other office closure costs		-		15,196		(499)		14,697
Third-party and other costs		-		5,660		(5,253)		407
Total restructuring liability	$	-	$	28,844	$	(9,280)	$	19,564