Restructuring

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

RESTRUCTURING

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, 2019 and 2018, restructuring charges were comprised of the following (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018
Employee severance and related costs	$	6,213	$	22		$	13,356	$	2,341
Consolidation of leased facilities	2,666		(508		)	2,666		10,797
Total Restructuring charges	$	8,879	$	(486	)	$	16,022	$	13,138

For the three and nine months ended September 30, 2019, the Company incurred costs related to initiatives intended to accelerate the transformation to a cloud-based subscription business, increase strategic focus, and improve operational efficiency. For the three months ended September 30, 2019, the Company incurred costs of $6.2 million related to employee severance and related costs and $2.7 million related to the consolidation of leased facilities. For the nine months ended September 30, 2019, the Company incurred costs of $13.4 million related to employee severance and related costs and $2.7 million related to the consolidation of leased facilities. Total costs incurred for the three months ended September 30, 2018 were not material. During the nine months ended September 30, 2018, the Company incurred costs of $2.3 million related to employee severance and related costs.

In connection with the Company's restructuring initiatives, the Company had previously vacated or consolidated properties and subsequently reassessed its obligations on non-cancelable leases. The fair value estimate of these non-cancelable leases was based on the contractual lease costs over the remaining term, partially offset by estimated future sublease rental income. During the three months ended September 30, 2018, the Company recorded a credit of $0.5 million as a reversal of the original estimated charge as a result of a reassessment, which decreased restructuring charges related to the lease exit costs. In addition, during the nine months ended September 30, 2018, the Company incurred costs of $10.8 million related to the consolidation of leased facilities.

Restructuring accruals

The activity in the Company’s restructuring accruals for the nine months ended September 30, 2019 is summarized as follows (in thousands):

	Total
Balance at January 1, 2019	$	45,095
Adjustment for ASC 842	(42,248		)
Employee severance and related costs	13,356
Payments	(10,507		)
Balance at September 30, 2019	$	5,696

As of September 30, 2019, the $5.7 million in outstanding restructuring accruals primarily relate to employee severance and related costs. As a result of the adoption of the new lease standard, the provision for lease losses was reclassified, resulting in a reduction to operating lease right-of-use assets as of January 1, 2019. Refer to Note 2 for additional information on adoption of the lease standard.