SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Restructuring Plan

On April 9, 2020, the Company announced a restructuring plan to help manage the near-term financial impacts of the COVID-19 pandemic (the "Restructuring Plan"). In addition to reductions and deferrals in spending, the Restructuring Plan’s cost-cutting measures included workforce reductions affecting approximately 1,000 employees and furloughs affecting approximately 1,100 additional employees, as well as salary reductions and reduced-hour work weeks. The Company is also deferring share repurchases under its stock repurchase program indefinitely.

The Company expects to incur total pre-tax restructuring and related charges of approximately $4.0 million to $5.0 million during the year ending December 31, 2020 in connection with the employee terminations under the Restructuring Plan, substantially all of which represents future cash expenditures for the payment of severance and related benefits costs. The Company also expects to incur an additional $4.0 million to $5.0 million related to supporting furloughed employees, including certain one-time payments and benefits.

For details on the Restructuring Plan, refer to the Company's Current Report on Form 8-K filed with the SEC on April 9, 2020.

Revolving Credit Facility

On May 5, 2020, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association (the "Credit Agreement"), which provides for a $75.0 million senior unsecured revolving credit facility and a letter of credit sub-limit of $25.0 million. The commitments under the Credit Agreement expire on May 5, 2023. The proceeds of the loans under the Credit Agreement may be used for working capital and general corporate purposes. The Company intends to move its existing letters of credit in aggregate amount of approximately $21.5 million under the Credit Agreement sub-limit; once this transfer is completed, the bank deposits previously used to collateralize the Company's letters of credit will no longer have restrictions on their use and approximately $53.5 million will remain available under the revolving credit facility. There were no loans outstanding under the Credit Agreement as of the filing of this Quarterly Report on Form 10-Q.

RSU Tax Withholding Method

In May 2020, the Company changed the method by which it settles the employee tax liabilities associated with the vesting of RSUs from net share withholding to sell-to-cover. This change will be effective beginning with the Company's standard RSU vesting date for the second quarter, which occurs in May 2020. As a result of this change, the Company will no longer have cash outflows relating to the settlement of tax liabilities associated with employee stock awards. The change will not impact the Company's condensed consolidated income statement.