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RESTRUCTURING AND INTEGRATION EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and integration expense
Restructuring and integration expense is reflected on the consolidated statements of (loss) income as follows for the years ended December 31:
(in thousands)
 
2019
 
2018
 
2017
Total cost of revenue
 
$
3,562

 
$
1,466

 
$
568

Operating expenses
 
71,248

 
19,737

 
8,562

Restructuring and integration expense
 
$
74,810

 
$
21,203

 
$
9,130


The following presents restructuring and integration expense by segment. Corporate expenses are allocated to the segments based on the allocation methodology described in Note 19.
(in thousands)
 
Small Business Services
 
Financial Services
 
Direct Checks
 
Consolidated
2019
 
$
49,634

 
$
20,879

 
$
4,297

 
$
74,810

2018
 
10,837

 
10,087

 
279

 
21,203

2017
 
4,775

 
3,950

 
405

 
9,130


Restructuring and integration expense was comprised of the following for the years ended December 31:
(in thousands)
 
2019
 
2018
 
2017
External consulting fees
 
$
45,638

 
$
8,509

 
$
516

Internal labor
 
12,115

 
4,654

 
1,127

Employee severance benefits
 
10,865

 
5,774

 
7,176

Other
 
6,192

 
2,266

 
311

Restructuring and integration expense
 
$
74,810

 
$
21,203

 
$
9,130
Changes in restructuring and integration accruals
Changes in our restructuring and integration accruals were as follows:
(in thousands)
 
Employee severance benefits
 
Operating lease obligations
 
Total
Balance, December 31, 2016
 
$
4,181

 
$
—

 
$
4,181

Charges
 
7,843

 
23

 
7,866

Reversals
 
(667
)
 
—

 
(667
)
Payments
 
(6,981
)
 
(19
)
 
(7,000
)
Balance, December 31, 2017
 
4,376

 
4

 
4,380

Charges
 
7,672

 
597

 
8,269

Reversals
 
(1,898
)
 
(71
)
 
(1,969
)
Payments
 
(6,971
)
 
(248
)
 
(7,219
)
Balance, December 31, 2018
 
3,179

 
282

 
3,461

Charges
 
11,516

 
—

 
11,516

Reversals
 
(651
)
 
—

 
(651
)
Payments
 
(10,585
)
 
—

 
(10,585
)
Adoption of ASU No. 2016-02(1)
 
—

 
(282
)
 
(282
)
Balance, December 31, 2019
 
$
3,459

 
$
—

 
$
3,459



(1) Upon adoption of ASU No. 2016-02, Leasing, and related amendments on January 1, 2019 (Note 2), our operating lease obligation accrual was reversed and the related operating lease asset was analyzed for impairment in accordance with the new guidance.