Restructuring and Other Related Costs

9 Months Ended

Sep. 30, 2021

Restructuring and Other Related Costs

Restructuring and Other Related Costs

Note 7 — Restructuring and Other Related Costs

The Company has undergone restructuring efforts to better align its cost structure with its business and market conditions. These restructuring efforts include severance and other employee costs, lease and other contract termination costs and asset impairments. Severance and other employee costs include severance payments, related employee benefits, stock-based compensation related to the accelerated vesting of certain equity awards and employee-related legal fees. Lease and other contract termination costs include charges related to lease consolidation and abandonment of spaces no longer utilized and the cancellation of certain contracts with outside vendors. Asset impairments include charges related to leasehold improvements and furniture in spaces vacated or no longer in use. The restructuring plans and future cash outlays are recorded in "Accrued expenses," "Accrued compensation," and "Other long-term liabilities" in the Consolidated Balance Sheet as of December 31, 2020. There are no future restructuring plans and future cash outlays as of September 30, 2021.

During 2020, the Company announced a restructuring effort to align with its virtual-first operating model and reduce the operating cost structure resulting in a reduction of headcount and office lease costs. The Company recognized charges related to this restructuring effort of $1.0 million for the nine months ended September 30, 2021. The Company does not expect to incur additional charges related to this restructuring effort as of September 30, 2021.

The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2020 restructuring effort:

	Severance and Other		Lease Termination
	Employee Costs		Costs		Total
	(in thousands)
Balance as of January 1, 2020	$	—	$	—	$	—
Restructuring and other related costs		780		59		839
Cash paid		(442)		—		(442)
Balance as of December 31, 2020		338		59		397
Restructuring and other related costs		897		77		974
Cash paid		(1,235)		(136)		(1,371)
Balance as of September 30, 2021	$	—	$	—	$	—