Restructuring

12 Months Ended

Dec. 31, 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 years ended December 31, 2019, 2018 and 2017, restructuring charges from continuing operations were comprised of the following (in thousands):

	Year Ended December 31,
	2019		2018		2017
Employee severance and related costs	$	19,581	$	2,507	$	62,844
Consolidation of leased facilities	2,666		14,218		9,718
Reversal of previous charges	—		—		(187)
Total Restructuring charges	$	22,247	$	16,725	$	72,375

During the years ended December 31, 2019, 2018, and 2017, the Company incurred costs of $22.2 million, $2.5 million, and $53.7 million, respectively, related to initiatives intended to accelerate the transformation to a cloud-based subscription business, increase strategic focus, and improve operational efficiency. For December 31, 2019, the Company incurred costs of $19.6 million related to employee severance and related costs and $2.7 million related to the consolidation of leased facilities.

In connection with its 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 years ended December 31, 2018 and 2017, the Company incurred costs of $14.2 million and $9.7 million, respectively, related to the consolidation of leased facilities.

During the year ended December 31, 2017, the Company incurred costs of $8.1 million related to operational initiatives designed to improve infrastructure scalability and cost saving efficiencies. The charges primarily related to employee severance. Activities related to this program were substantially completed as of the first quarter of 2018.

Restructuring accruals

The activity in the Company’s restructuring accruals for the year ended December 31, 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	19,581
Payments	(15,471)
Balance at December 31, 2019	$	6,957

As of December 31, 2019, the $7.0 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. During the year ended December 31, 2019, the charges for consolidation of leased facilities were recognized as an impairment of the related operating lease right-of-use assets subsequent to the adoption of ASC 842. Refer to Note 2 for additional information on adoption of the lease standard.