Restructuring and Asset Impairment Charges

In July 2018, the Company announced a number of cost reduction initiatives that are expected to reduce certain of the Company’s General and Administrative, Customer Service, and Sales Support fixed costs. The Company completed the majority of these cost reduction initiatives in the second and third quarters of 2018, with the remainder by the end of 2018. In addition to resulting in meaningful cost reductions, the Company’s initiatives are expected to streamline operations, focus engineering and innovation and provide a better focus on driving customer satisfaction.

As part of these initiatives, the Company and Best Buy agreed in principle to end the co-branded Best Buy Smart Home by Vivint arrangement, which resulted in the elimination of in-store sales positions. In addition, the Company eliminated other general and administrative positions.

The following table presents accrued restructuring activity for the six months ended June 30, 2019 and the twelve months ended December 31, 2018 (in thousands):



	Contract termination costs			Employee severance and termination benefits			Total
Accrued restructuring balance as of December 31, 2017	$	558		$	—		$	558
Restructuring expenses	—			4,683			4,683
Cash payments	(91		)	(4,341		)	(4,432		)
Accrued restructuring balance as of December 31, 2018	467			342			809
Cash payments	(46		)	(313		)	(359		)
Accrued restructuring balance as of June 30, 2019	$	421		$	29		$	450

Contract termination costs represent ongoing contractual commitments related to the 2015 restructuring of the Company's Wireless Internet Business. Additional charges may be incurred in the future for facility-related or other restructuring activities as the Company continues to align resources to meet the needs of the business.