Restructuring Charges

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

For the quarter ended March 31, 2020, we incurred restructuring charges of $5.5 million in connection with our international sales and marketing strategy. We did not incur restructuring charges for the quarter ended March 31, 2019.

Centralization of Global Sales and Marketing Structure

During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). As of March 31, 2020, we incurred $5.5 million and we expected to incur $5.6 million additional costs as it relates to the restructuring activities of this strategy.

The following table summarizes our restructuring exit costs (in thousands):


	Beginning balance January 1, 2020		Accruals		Payments		Ending balance March 31, 2020		Cumulative Charges Incurred		Expected Additional Expenses to be Incurred
Termination benefits	$	8,389	$	761	$	1,824	$	7,326	$	9,641	$	2,220
Contract termination costs	338		—		—		338		338		300
Other related costs	2,785		4,786		2,408		5,163		7,594		3,036
Total	$	11,512	$	5,547	$	4,232	$	12,827	$	17,573	$	5,556

Operating Expense Reduction in Workforce

In April 2020, we reduced our US shoreside workforce by approximately 23% through a combination of permanent layoffs and 90-day furloughs with paid benefits. We incurred severance costs of $26.9 million in April 2020.