Restructuring Charge

12 Months Ended

Dec. 31, 2019

Restructuring Charge [Abstract]

RESTRUCTURING CHARGE

NOTE 4 — RESTRUCTURING CHARGE

The Company recorded restructuring charges in the amount of $1,699, $8,506 and $12,374 for the years ended December 31, 2019, 2018 and 2017, respectively.

The restructuring charges during the year ended December 31, 2019 were primarily related to severance costs for magicJack employees from a reduction in workforce and lease termination costs in the Principal Investments – United Online and magicJack segment.

The restructuring charges during the year ended December 31, 2018 were primarily related to severance costs and lease loss accruals for the planned consolidation of office space related to operations in the Capital Markets segment and the rebrand of B. Riley Wealth Management.

During the year ended December 31, 2017, the Company implemented costs savings measures taking into account the planned synergies as a result of the acquisitions of FBR and Wunderlich, which included a reduction in force for some of the corporate executives of FBR and Wunderlich and a restructuring to integrate FBR and Wunderlich's operations with the Company's existing operations. These initiatives resulted in a restructuring charge of $11,651 during the year ended December 31, 2017. The restructuring charges during the year ended December 31, 2017 included $2,400 related to severance and $884 related to the accelerated vesting of restricted stock awards to former corporate executives of FBR and Wunderlich and $3,241 of severance and $1,710 related to accelerated vesting of stock awards to employees and $3,416 of lease loss accruals and impairments for the planned consolidation of office space related to operations of FBR and Wunderlich. Of the $11,651 of restructuring charges related to these initiatives, $7,855 related to the Capital Markets segment and $3,796 related to corporate overhead. The restructuring charge during the year ended December 31, 2017 also included employee termination costs of $723 related to a reduction in personnel in the Principal Investments - United Online segment of the Company's operations.

The following tables summarize the changes in accrued restructuring charge during the year ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019			2018			2017
Balance, beginning of year	$	3,855		$	2,600		$	694
Restructuring charge		1,699			8,506			12,374
Cash paid		(4,150	)		(4,667	)		(5,957	)
Non-cash items		196			(2,584	)		(4,511	)
Balance, end of year	$	1,600		$	3,855		$	2,600

The following tables summarize the restructuring activities by reportable segment during the year ended December 31, 2019, 2018 and 2017:

	Year Ended December 31, 2019
				Principal
				Investments -
	Capital			United Online
	Markets			and magicJack		Corporate		Total
Restructuring charge:
Employee termination costs	$	—		$	1,594	$	—	$	1,594
Facility closure and consolidation charge (recovery)		(4	)		109		—		105
Total restructuring charge	$	(4	)	$	1,703	$	—	$	1,699

	Year Ended December 31, 2018
			Principal
			Investments -
	Capital		United Online
	Markets		and magicJack		Corporate			Total
Restructuring charge:
Employee termination costs	$	4,179	$	338	$	—		$	4,517
Impairment of intangible assets		1,070		—		—			1,070
Facility closure and consolidation charge (recovery)		3,129		—		(210	)		2,919
Total restructuring charge	$	8,378	$	338	$	(210	)	$	8,506

	Year Ended December 31, 2017
			Principal
			Investments -
	Capital		United Online
	Markets		and magicJack		Corporate		Total
Restructuring charge:
Employee termination costs	$	4,951	$	723	$	3,284	$	8,958
Facility closure and consolidation charge (recovery)		2,904		—		512		3,416
Total restructuring charge	$	7,855	$	723	$	3,796	$	12,374