RESTRUCTURING ACCRUALS

The Company recorded restructuring expense aggregating $9.4 million in the year ended December 31, 2017, $2.7 million in the year ended December 31, 2016 and $2.1 million in the year ended December 31, 2015.

Merger Restructuring Initiative

In connection with the Merger, the Company's management approved a restructuring plan in the fourth quarter of 2017 to eliminate certain redundant positions and facilities within the combined companies (the "Merger Restructuring Initiative"). In connection with this initiative, the Company recorded $8.5 million of restructuring expense in 2017 for severance and related costs for approximately 120 employees. The Company expects to record additional restructuring expense in 2018 in connection with this initiative for redundant facilities and severance for approximately 40 additional employees as it continues to combine the two businesses and benefit from operational synergies. The Company expects the amount accrued at December 31, 2017 will be paid in 2018. The Company anticipates it will record additional future expense in connection with this initiative for headcount and redundant facilities aggregating approximately $12 million. The Company believes that the payments related to this expected additional future expense will be completed by early 2019.

A summary of the Merger Restructuring Initiative accrual activity for the year ended December 31, 2017 is as follows (in thousands):



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2017
Severance	$	—	$	8,508	$	—	$	(913	)	$	7,595

The Company assumed GENBAND's previously recorded restructuring liability, totaling $4.1 million, on the Merger Date (the "GENBAND Restructuring Initiative"). Of this amount, $3.7 million related to severance and related costs and $0.4 million related to facilities. The Company does not expect to record additional expense in connection with this initiative with the exception of adjustments for changes in estimated costs. The Company expects that the payments related to this assumed liability will be completed in 2018. A summary of the GENBAND Restructuring Initiative accrual activity for the year ended December 31, 2017 is as follows (in thousands):



Year ended December 31, 2017	Balance at January 1, 2017		Liability assumed in connection with Merger		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	—	$	3,663	$	—	$	(158	)	$	(1,589	)	$	1,916
Facilities	—		431		—		(123		)	(103		)	205
	$	—	$	4,094	$	—	$	(281	)	$	(1,692	)	$	2,121

2016 Restructuring Initiative

In July 2016, the Company announced a program (the "2016 Restructuring Initiative") to further accelerate its investment in new technologies, as the communications industry migrates to a cloud-based architecture and as the Company pursues new strategic initiatives, such as new products and an expanded go-to-market footprint in selected geographies and discrete vertical markets. The Company recorded $2.0 million of restructuring expense in the aggregate in connection with this initiative, comprised of $1.9 million for severance and related costs and $0.1 million to abandon its facility in Rochester, New York (the "Rochester Facility"). The actions under the 2016 Restructuring Initiative have been implemented and accordingly, the Company does not expect to record additional expense in connection with this initiative. The amounts accrued for severance and related costs had been fully paid by the end of the third quarter of 2017. The Company expects that the amounts accrued for facilities will be paid by the end of October 2019, when the lease on the Rochester Facility expires.

In connection with the 2016 Restructuring Initiative, the Company recorded $0.5 million of restructuring expense in the year ended December 31, 2017, including adjustments for changes in estimated costs, comprised of $0.4 million for severance and related costs and $0.1 million related to the Company's Rochester Facility. The Company recorded $1.5 million of expense in the year ended December 31, 2016 related to headcount reductions. Summaries of the 2016 Restructuring Initiative accrual activity for the years ended December 31, 2017 and 2016 are as follows (in thousands):



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	497	$	405	$	(26	)	$	(876	)	$	—
Facilities	—		126		—			(31		)	95
	$	497	$	531	$	(26	)	$	(907	)	$	95



Year ended December 31, 2016	Balance at January 1, 2016		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2016
Severance	$	—	$	1,484	$	—	$	(987	)	$	497

Taqua Restructuring Initiative

In connection with the acquisition of Taqua, the Company's management approved a restructuring plan in the third quarter of 2016 to eliminate certain redundant positions within the combined companies. On October 24, 2016, the Audit Committee of the Board of Directors of the Company approved a broader Taqua restructuring plan related to headcount and redundant facilities (both restructuring plans, the "Taqua Restructuring Initiative"). The Company recorded $1.8 million of restructuring expense in the aggregate in connection with this initiative, comprised of $1.2 million for severance and related costs and $0.6 million related to the elimination of redundant facilities, including adjustments recorded for changes in cost estimates for the planned restructuring activities. The actions under the Taqua Restructuring Initiative have been implemented and accordingly, the Company does not expect to record additional expense in connection with this initiative. The amounts accrued for severance and related costs had been fully paid by the end of the third quarter of 2017. The Company expects that the amounts accrued for facilities will be paid by the end of 2018.

In connection with the Taqua Restructuring Initiative, the Company recorded $0.7 million of restructuring expense, including adjustments for changes in estimated costs, in the year ended December 31, 2017, comprised of $0.2 million for severance and related costs and $0.5 million related to redundant facilities. The Company recorded $1.2 million of restructuring expense for this initiative in the year ended December 31, 2016, comprised of $1.0 million for severance and related costs and $0.2 million related to redundant facilities. Summaries of the Taqua Restructuring Initiative accrual activity for the years ended December 31, 2017 and 2016 are as follows (in thousands):



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	384	$	245	$	(49	)	$	(580	)	$	—
Facilities	218		508		—			(361		)	365
	$	602	$	753	$	(49	)	$	(941	)	$	365



Year ended December 31, 2016	Balance at January 1, 2016		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2016
Severance	$	—	$	971	$	—	$	(587	)	$	384
Facilities	—		218		—		—			218
	$	—	$	1,189	$	—	$	(587	)	$	602

2015 Restructuring Initiative

To better align the Company's cost structure to its then-current revenue expectations, in April 2015, the Company announced a cost reduction review. As part of this review, on April 16, 2015, the Company initiated a restructuring plan to reduce its workforce by approximately 150 positions, or 12.5% of its worldwide workforce (the "2015 Restructuring Initiative"). In connection with the 2015 Restructuring Initiative, the Company recorded $3.8 million of restructuring expense for severance and related costs in the year ended December 31, 2015. The Company recorded $67,000 in the year ended December 31, 2016 to adjust the amount expected to ultimately be paid for severance. Summaries of the 2015 Restructuring Initiative accrual for the years ended December 31, 2017 and 2016 are as follows (in thousands):



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2017
Severance	$	168	$	—	$	—	$	(168	)	$	—



Year ended December 31, 2016	Balance at January 1, 2016		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2016
Severance	$	749	$	—	$	67	$	(648	)	$	168

Balance Sheet Classification

The current portions of accrued restructuring are included as a component of Accrued expenses in the consolidated balance sheets. The long-term portions of accrued restructuring are included as a component of Other long-term liabilities in the consolidated balance sheets. The long-term portions of accrued restructuring were $0.2 million at December 31, 2017 and $0.1 million at December 31, 2016. These amounts represent future lease payments on restructured facilities.