In March 2022, the Company implemented a restructuring plan (the “March 2022 Restructuring Plan”) to streamline its business, increase operating efficiency, and reduce costs over the long-term after the termination of its proposed merger with Zendesk. During the three and six months ended June 30, 2022, the Company had gains of approximately $3.3 million and incurred costs of approximately $1.6 million, respectively, associated with the March 2022 Restructuring Plan, which are primarily comprised of employee severance, stock-based compensation expense, the partial termination of its San Mateo, CA headquarters lease and related leasehold improvement impairment costs, and other contract termination costs related to the Company's decision to abandon its future office expansion plans. Additionally, the Company has streamlined its brand positioning and will focus on the SurveyMonkey and Momentive brands. As such, it has determined that its brand-related intangibles from a prior acquisition has no future economic benefit and has accelerated the amortization of such through the end of 2022, when the Company plans to discontinue those brand names.

As part of the restructuring plan, the Company partially terminated the lease for its San Mateo, CA headquarters, which resulted in an estimated reduction in total future undiscounted fixed lease cost payments of approximately $26.9 million as of the lease amendment date in May 2022. The Company also recorded leasehold improvement impairment costs as the Company estimates that the leasehold improvements at the vacated headquarters would not be recoverable.

The Company may incur additional restructuring charges related to the March 2022 Restructuring Plan. In particular, the Company is continuing to evaluate its real estate needs and has actively marketed for sublease several of its leases. The Company expects the actions related to the March 2022 Restructuring Plan to be substantially complete by the end of 2022.

The March 2022 Restructuring Plan was subject to applicable laws and consultation processes as part of the Company's strategic plan to reduce costs and improve efficiencies. In connection with this action, the Company

incurred the following pre-tax costs for the three and six months ended June 30, 2022 (in thousands):


(in thousands)	Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Employee severance	$	1,670		$	2,492
Gain on lease modification		(6,370	)		(6,370	)
Impairment of property and equipment		838			838
Stock-based compensation		—			2,761
Contract termination and other costs		404			1,659
Amortization of intangible assets		135			180
Total restructuring costs	$	(3,323	)	$	1,560

Restructuring costs included $1.4 million recorded in accounts payable, accrued compensation, and accrued expenses and other current liabilities lines in the condensed consolidated balance sheet as of June 30, 2022. The majority of the amounts accrued pertain to severance and contract termination costs, which will be paid through 2022.