Restructuring Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

In January 2020, we implemented a restructuring plan designed primarily to align our resources and investments with the strategic growth initiatives of the business. This restructuring plan resulted in a reduction of less than 2% of our total workforce as of March 31, 2020 as well as the impairment of certain long lived assets.

In April 2020, we implemented another restructuring plan to streamline the Company’s operations to more closely align expenses to the Company’s projected revenue, position the Company for improved operating performance and allow the Company to increase investment in the growth areas of the business. This restructuring plan resulted in the reduction of 6% of the Company’s workforce.

In August 2020, we implemented an additional restructuring plan, predominantly related to facilities and obsolete assets in order to position the Company for improved operating performance. This restructuring plan resulted in the reduction of less than 1% of the Company’s workforce.

The total restructuring charges during the nine months ended September 30, 2020 of $25.0 million includes $17.7 million of cash charges which consists of $14.1 million in provision for restructuring charges and $3.6 million in other adjustments, which was offset by a $0.5 million reduction in severance benefits that were not utilized. In addition, there are non-cash charges of $7.3 million related to fixed asset and right-of-use asset write-offs and stock-based compensation.

The following table sets forth the restructuring balance as of September 30, 2020 related to previous restructuring activities and a summary of restructuring activities during the nine months ended September 30, 2020 (in thousands):

	Severance and related costs			Facilities costs			Total costs
Balance, December 31, 2019	$	164		$	470		$	634
Provision for restructuring charges	13,861			257			14,118
Cash payments	(16,598		)	(97		)	(16,695		)
Other adjustments	3,153			(103		)	3,050
Balance, September 30, 2020	$	580		$	527		$	1,107

The remainder of the restructuring balance of $1.1 million at September 30, 2020 is primarily composed of $0.6 million of severance payments which we have paid, or expect to pay, during the fourth quarter of 2020, and $0.5 million of non-cancelable non-lease costs which we expect to pay over the terms of the related obligations through the first quarter of 2022.