Organizational Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

In June and December 2018, the Company's Board of Directors authorized management to implement reductions in its workforce (less than 10%) and rationalize its portfolio of leased properties due to the reductions in headcount ("2018 Restructuring Plans"). This restructuring effort resulted in the termination of one operating lease, the extension of the lease related to the Company's headquarters, and the sublease of three offices. In connection with the 2018 Restructuring Plans, the Company incurred total exit-related costs of $8.1 million. $10.3 million was recorded in 2018, and $2.2 million was reversed in 2019 related to an employee who ultimately did not exit the Company. These plans were complete as of December 31, 2019.

In May 2019, the Company implemented an additional reduction in force plan ("May 2019 Restructuring Plan") in order to reduce costs and more effectively align resources with business priorities. Together with attrition, the May 2019 Restructuring Plan resulted in the termination of approximately 10% of the Company's workforce. In connection with the May 2019 Restructuring Plan, the Company incurred total exit-related costs of $3.1 million during the year ended December 31, 2019. The Company does not expect to incur any future expenses related to this plan.

In August 2019, the Company implemented a further reduction in force plan ("August 2019 Restructuring Plan") in order to reduce costs and more effectively align resources with business priorities. The August 2019 Restructuring Plan resulted in the termination of approximately 8% of the Company's workforce. In connection with the August 2019 Restructuring Plan, the Company incurred total exit-related costs of $2.5 million.

The tables below summarize the balance of accrued restructuring expenses and the changes in the accrued amounts for each period presented.

2018 Restructuring Plans


(In thousands)	Severance pay and benefits		Short-term lease exit and other direct costs		Long-term lease exit and other direct costs		Total
Restructuring expense(1)	$	7,145	$	1,271	$	1,847	$	10,263
Payments	(2,652)		(561)		(37)		(3,250)
Foreign exchange	—		(2)		—		(2)
Accrued Balance as of December 31, 2018	$	4,493	$	708	$	1,810	$	7,011
Adoption of ASC 842(2)	—		(708)		(1,810)		(2,518)
Restructuring expense(3)	(2,195)		—		—		(2,195)
Payments	(2,298)		—		—		(2,298)

Accrued Balance as of December 31, 2019	$	—	$	—	$	—	$	—

(1) During the year ended December 31, 2018, the Company recognized a reduction of $0.7 million of liability related to the write-off of certain lease-related liabilities, offset by $0.5 million in stock-based compensation related to the termination of certain employees, $0.5 million in accelerated depreciation on assets located within subleased properties, and $0.1 million in other expenses.

(2) The Company adopted ASC 842, Leases, as of January 1, 2019. For additional details regarding the adoption, please refer to Footnote 2, Summary of Significant Accounting Policies.

(3) Restructuring expense decreased due to a reversal of planned executive compensation.

2019 Restructuring Plans


(In thousands)	May 2019 Restructuring Plan		August 2019 Restructuring Plan


Severance pay and benefits related restructuring expense	$	3,141	$	2,454
Payments	(2,847)		(1,756)

Accrued Balance as of December 31, 2019	294		698

Payments	(294)		(698)
Accrued Balance as of December 31, 2020	$	—	$	—