Restructuring and Long-Lived Asset Impairment (Tables)

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30, 2022 and 2021 associated with the 2019 Strategic Shift (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Restructuring costs:
Lease termination costs(1)	$	—	$	—	$	1,122	$	1,431
Incremental inventory reserve charges(2)		—		15,017		—		15,017
Other associated costs(3)		1,671		2,345		5,548		8,422
Total restructuring costs	$	1,671	$	17,362	$	6,670	$	24,870

(1) 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.

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

(3) 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 and were included in selling, general, and administrative expenses 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		10,532		16,835		27,598
Paid or otherwise settled		(953)		(10,532)		(16,346)		(27,831)
Balance at December 31, 2020		—		—		774		774
Charged to expense		—		1,650		10,684		12,334
Paid or otherwise settled		—		(1,650)		(10,532)		(12,182)
Balance as of December 31, 2021		—		—		926		926
Charged to expense		—		2,023		5,548		7,571
Paid or otherwise settled		—		(2,023)		(5,639)		(7,662)
Balance at September 30, 2022	$	—	$	—	$	835	$	835

(1) Lease termination costs exclude the $1.3 million, $6.1 million, $0.2 million and $0.9 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, for the years ended December 31, 2020 and 2021, and for the nine months ended September 30, 2022, respectively.

Schedule of long-lived asset impairment charges by type of long-lived asset

The following table details long-lived asset impairment charges by type of long-lived asset (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Long-lived asset impairment charges:
Leasehold improvements	$	—	$	—	$	2,557	$	—
Furniture and equipment		—		—		61		—
Operating lease right-of-use assets		887		316		887		1,398
Total long-lived asset impairment charges		887		316		3,505		1,398
Less: portion unrelated to 2019 Strategic Shift		—		—		(2,618)		—
2019 Strategic Shift long-lived asset impairment charges	$	887	$	316	$	887	$	1,398