Restructuring and Long-lived Asset Impairment (Tables)

6 Months Ended

Jun. 30, 2020

Restructuring and Long-lived Asset Impairment

Schedule of expenses associated with the 2019 Strategic Shift

The following table details the costs incurred during the three and six months ended June 30, 2020 associated with the 2019 Strategic Shift (in thousands):

	Three Months Ended		Six Months Ended
	June 30, 2020		June 30, 2020
Restructuring costs:
One-time termination benefits(1)	$	51	$	231
Lease termination costs(2)		656		1,245
Incremental inventory reserve charges(3)		57		543
Other associated costs(4)		4,483		10,099
Total restructuring costs	$	5,247	$	12,118

(1) These costs were primarily in costs applicable to revenues – products, service and other, in the condensed consolidated statements of operations.

(2) These costs were included in lease termination charges in the condensed consolidated statements of operations. This reflects termination fees paid, net of any gain from derecognition of the related operating lease assets and liabilities.

(3) These costs were included in costs applicable to revenue – products, service and other in the condensed consolidated statements of operations.

(4) Other associated costs primarily represent labor, lease, and other operating expenses incurred during the post-close wind-down period for the locations related to the 2019 Strategic Shift. For the three and six months ended June 30, 2020, costs of approximately $0.1 million and $0.4 million were included in costs applicable to revenue – products, service and other and $4.4 million and $9.7 million were included in selling, general, and administrative expenses, respectively, in the condensed consolidated statements of operations.

Schedule of changes in the restructuring accrual associated with the 2019 Strategic Shift

The following table details changes in the restructuring accrual associated with the 2019 Strategic Shift (in thousands):

	One-time		Lease		Other
	Termination		Termination		Associated
	Benefits		Costs (1)		Costs		Total
Balance at June 30, 2019	$	—	$	—	$	—	$	—
Charged to expense		1,008		1,350		4,321		6,679
Paid or otherwise settled		(286)		(1,350)		(4,036)		(5,672)
Balance at December 31, 2019		722		—		285		1,007
Charged to expense		231		5,690		10,099		16,020
Paid or otherwise settled		(879)		(5,690)		(9,103)		(15,672)
Balance at June 30, 2020	$	74	$	—	$	1,281	$	1,355

(1) Lease termination costs exclude the $1.3 million and the $4.4 million of gains from the derecognition of the operating lease assets and liabilities relating to the terminated leases as part of the 2019 Strategic Shift for the six months ended December 31, 2019 and for the six months ended June 30, 2020, respectively.