RESTRUCTURING COSTS AND ACCRUALS

In February 2016, we committed to a cost efficiency program that encompassed a series of measures intended to allow us to more efficiently operate in a leaner, more directed cost structure. These included reductions in our workforce, consolidation of facilities, transfers of certain business processes to lower cost regions, and reductions in other third-party services costs. The cost efficiency program was substantially complete as of December 31, 2017.

During the three and nine months ended September 30, 2018, we recorded restructuring charges of $0.2 million and $3.4 million, respectively. The restructuring charges for the nine months ended September 30, 2018 included $1.7 million of severance costs, $0.2 million of facility restructuring accrual adjustments, and $1.1 million of leasehold improvement write-off resulting from the consolidation of our facilities in Burlington, Massachusetts,

During the three and nine months ended September 30, 2017, we recorded recoveries of $0.6 million and restructuring charges of $6.5 million, respectively. The restructuring charges for the nine months ended September 30, 2017 included $1.2 million of severance costs and $5.2 million of facility restructuring charges for the closure of certain excess facility space, including $3.2 million of leasehold improvement write-offs.

Restructuring Summary

The following table sets forth restructuring expenses recognized for the three and nine months ended September 30, 2018 and 2017 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018		2017
Employee	$	879		$	(1,137	)	$	1,734	$	1,225
Facility	(895		)	735			177		3,364
Total facility and employee charges	(16		)	(402		)	1,911		4,589
Other	242			(180		)	1,490		1,875
Total restructuring charges, net	$	226		$	(582	)	$	3,401	$	6,464

The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2018 (in thousands):



	Employee			Facility			Total
Accrual balance as of December 31, 2017	$	1,998		$	2,479		$	4,477
Restructuring charges and revisions	1,734			177			1,911
Accretion	—			101			101
Cash payments	(2,369		)	(2,257		)	(4,626		)
Foreign exchange impact on ending balance	5			1			6
Accrual balance as of September 30, 2018	$	1,368		$	501		$	1,869
Less: current portion	1,368			283			1,651
Long-term accrual balance as of September 30, 2018	$	—		$	218		$	218

The employee restructuring accrual at September 30, 2018 represents severance costs to former employees that will be paid out within 12 months, and is, therefore, included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheets as of September 30, 2018.

The facility restructuring accrual at September 30, 2018 represents contractual lease payments, net of actual or estimated sublease income, on space vacated as part of our restructuring actions. The leases, and payments against the amounts accrued, extend through 2026 unless we are able to negotiate earlier terminations. Of the total facility restructuring balance, $0.3 million is included in the caption “accrued expenses and other current liabilities” and $0.2 million is included in the caption “other long-term liabilities” in our condensed consolidated balance sheet as of September 30, 2018.