Restructuring Costs

6 Months Ended

Jun. 30, 2020

Restructuring Costs

Restructuring Costs

14. Restructuring Costs

In February 2020, the Company announced the closure of its fulfillment center in Arlington, Texas and the consolidation of production volume from the Arlington, Texas fulfillment center to the Company’s fulfillment centers in Linden, New Jersey and Richmond, California in order to more efficiently continue to service the Company’s national footprint while also enabling the Company to redirect financial resources into other parts of the business, including growth initiatives.

As a result of the action, which was completed in May 2020, the Company recorded $0.8 million in total restructuring costs during the first half of 2020, consisting of employee-related costs and other exit costs, most of which resulted in cash expenditures in the second quarter of 2020. During the three months ended June 30, 2020, the Company recorded $0.3 million of other exit costs in Other operating expense. During the six months ended June 30, 2020, the Company recorded $0.4 million of employee-related expenses, primarily consisting of severance payments, and $0.4 million of other exit costs in Other operating expense. In addition, during the three months and six months ended June 30, 2020, the Company recorded non-cash impairment charges of $0.2 million and $7.6 million, respectively, primarily consisting of leasehold improvements and equipment. See Note 6 for further discussion of the impairment charges.

The following table summarizes the activity for the restructuring charges discussed above and the related liabilities recorded in Accounts payable and Accrued expenses and other current liabilities:

	Employee-Related Costs			Other Exit Costs	Total
	(In thousands)
Balance — December 31, 2019	$	—	$	—	$	—
Charges		600		104		704
Cash payments		—		(33)		(33)
Balance — March 31, 2020	$	600	$	71	$	671
Charges		—		337		337
Cash payments		(257)		(260)		(517)
Other		(223)		—		(223)
Balance — June 30, 2020	$	120	$	148	$	268

In January 2019, the Company announced that it was transferring a substantial portion of the production volume from its Arlington, Texas fulfillment center to its Linden, New Jersey fulfillment center. As a result of the action the Company recorded approximately $0.6 million in total restructuring costs, including $0.2 million of employee-related expenses, substantially all of which resulted in cash expenditures in Other operating expense, and $0.4 million of accelerated depreciation in Depreciation and amortization, all of which were recorded during the first half of 2019.