RESTRUCTURING

The Company has implemented multiple restructuring plans to reduce its cost structure, align resources with its product strategy and improve efficiency, which has resulted in workforce reductions and the consolidation of certain leased facilities.

For the three and nine months ended September 30, 2017 and September 30, 2016, restructuring charges were comprised of the following (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017			2016
Employee severance and related costs	$	1,895	$	3,933	$	10,448		$	42,342
Consolidation of leased facilities	6,657		8,243		8,408			19,147
Reversal of previous charges	—		—		(178		)	(177		)
Total Restructuring charges	$	8,552	$	12,176	$	18,678		$	61,312

During the three and nine months ended September 30, 2017, the Company incurred costs of $1.7 million and $9.2 million, respectively, related to operational initiatives designed to improve infrastructure scalability and cost saving efficiencies. The charges primarily related to employee severance. The majority of the activities related to this program were substantially completed as of the end of the third quarter of 2017. As of September 30, 2017, total charges incurred since inception were $9.2 million.

All remaining costs for the three and nine months ended September 30, 2017 and 2016 relate to other restructuring plans, wherein the majority of the activities related to these previous programs are substantially complete.

Restructuring accruals

The activity in the Company’s restructuring accruals for the nine months ended September 30, 2017 is summarized as follows (in thousands):



	Total
Balance at January 1, 2017	$	38,059
Restructuring charges	18,678
Payments	(15,770		)
Balance at September 30, 2017	$	40,967

As of September 30, 2017, the $41.0 million in outstanding restructuring accruals primarily relate to future payments for leased facilities.

Subsequent Event

On October 4, 2017, the Company announced a restructuring program to support its initiatives intended to accelerate the transformation to a cloud-based subscription business, increase strategic focus, and improve operational efficiency. The program will include, among other things, the elimination of full-time positions and facilities consolidation. The Company currently expects to record in the aggregate approximately $60.0 million to $100.0 million in pre-tax restructuring charges associated with this program. Included in these pre-tax charges are approximately $55.0 million to $70.0 million related to employee severance arrangements and approximately $5.0 million to $30.0 million related to the consolidation of leased facilities and other charges associated with the program. Substantially all of these charges will result in future cash expenditures. The Company currently anticipates completing the majority of the activities related to this program during the fourth quarter of 2017 and during fiscal year 2018.