Severance and Other Exit Costs

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Severance and Other Exit Costs

Severance and Other Exit Costs

The Company evaluates its data center, sales and marketing, support and engineering operations and the general and administrative function on an ongoing basis in an effort to optimize its cost structure. As a result, the Company may incur charges for employee severance, exiting facilities and restructuring data center commitments and other related costs.

2020 Restructuring Plan

During the three months ended March 31, 2020, the Company announced plans to eliminate approximately 47 positions, located primarily in Massachusetts, in order to streamline overall operations (the "2020 Restructuring Plan"). During the three months ended March 31, 2020, the Company incurred severance costs of $1.6 million and paid $0.4 million and had a remaining accrued severance liability of $1.3 million as of March 31, 2020 in connection with the 2020 Restructuring Plan. The Company expects to complete severance payments related to the 2020 Restructuring Plan during the year ending December 31, 2020.

2019 Restructuring Plan

In January 2019, the Company announced plans to eliminate approximately 40 positions located primarily in the southwest United States, and further consolidate a Massachusetts facility, in order to streamline operations and create operational efficiencies (the "2019 Restructuring Plan"). During the three months ended March 31, 2020, the Company completed severance payments related to the 2019 Restructuring Plan and had no remaining accrued severance liability as of March 31, 2020.

In connection with the 2019 Restructuring Plan, the Company reduced the amount of space leased for an office in Massachusetts. During the three months ended March 31, 2020, the Company incurred facility exit costs of $0.0 million and paid $0.1 million. The Company had a remaining facility exit cost accrual of $1.2 million as of March 31, 2020 in connection with the 2019 Restructuring Plan.

2018 Restructuring Plan

In January 2018, the Company announced plans to eliminate approximately 71 positions, later increased to approximately 95 positions, primarily in the Asia Pacific region and to a lesser extent in the U.S., in order to streamline operations and create operational efficiencies (the "2018 Restructuring Plan"). The Company completed all payments relating to the 2018 Restructuring Plan during the year ended December 31, 2019.

In connection with the 2018 Restructuring Plan, the Company closed offices in Ohio. During the three months ended March 31, 2020, the Company incurred no facility charges and made payments of $0.0 million. The Company had a remaining accrued facility liability of $0.1 million as of March 31, 2020 in connection with the 2018 Restructuring Plan.

Activity of Combined Restructuring Plans

The following table provides a summary of the aggregate activity for the three months ended March 31, 2020 related to the severance accrual for the Company’s combined restructuring plans:

	Employee  Severance
	(unaudited, in thousands)
Balance at December 31, 2019	$	44
Severance charges	1,646
Cash paid	(415		)
Balance at March 31, 2020	$	1,275

The following table provides a summary of the aggregate activity for the three months ended March 31, 2020 related to the facilities exit accrual for the Company’s combined restructuring plans:

	Facilities
	(unaudited, in thousands)
Balance at December 31, 2019	$	2,369
Facility charges	36
Sublease income received	42
Cash paid	(244		)
Balance at March 31, 2020	$	2,203

The following table presents restructuring charges recorded in the consolidated statements of operations and comprehensive income (loss) for the periods presented:

	Three Months Ended March 31,
	2019		2020
	(unaudited, in thousands)
Cost of revenue	$	1,267	$	142
Sales and marketing	220		569
Engineering and development	414		446
General and administrative	114		525
Total restructuring charges	$	2,015	$	1,682