In connection with our 2022 and 2023 Restructuring Plans, restructuring and impairment includes the following (in thousands):


	Three Months Ended March 31,
	2025		2024
Impairment of right-of-use assets and property, plant and equipment	$	—	$	—
Contract termination and other restructuring costs		169		975
Restructuring and impairment	$	169	$	975

As a result of our 2022 and 2023 Restructuring Plans, we decided to seek a sublease for all of our leased spaces on Third Street and Mission Bay Blvd. South. Accordingly, we evaluate each space for impairment when management decides to sublease the respective space and at each reporting date thereafter, as facts and circumstances change. The significant assumptions in our impairment analysis relate to sublease income, including the length of time to enter into a sublease, sublease rental payments, free rent periods, tenant improvement allowances and broker commissions. When available, we use sublease negotiations or agreements, but in the absence of such information, we develop our own subjective estimates based on current real estate trends and market conditions. Accordingly, our estimates are subject to significant risk, and the terms of sublease agreements, if any, and the resulting amount and timing of sublease income, if ever realized, may be materially different than our estimates.

As part of our evaluation of each sublease space, we separately compare the estimated undiscounted sublease income, as described above, for each sublease to the net book value of the related long-term assets, which include right-of-use assets and certain property, plant and equipment, primarily for leasehold improvements (collectively, sublease assets). If such sublease income exceeds the net book value of the sublease assets, we do not record an impairment charge. Otherwise, we record an impairment charge by reducing the net book value of the sublease assets to their estimated fair value, which we determined by discounting the estimated sublease income using the estimated borrowing rate of a market participant subtenant.

We recorded no impairment charges for three months ended March 31, 2025 and 2024.

We have incurred significant contract termination costs in connection with our Restructuring Plans. Because we continue to adjust the liability based on updates to our assumptions at each reporting date, we continue to recognize expense as our estimates change until settlement.

The following are reconciliations of the contract termination and other costs for three months ended March 31, 2025 and 2024 (in thousands):


	For the Three Months Ended March 31,
	2025			2024
Liability balances as of December 31, 2024 and 2023, respectively	$	9,078		$	5,542
Expense recognized during the period		169			975
Payments during the period		(554	)		(928	)
Liability balances as of March 31, 2025 and 2024, respectively	$	8,693		$	5,589

As of March 31, 2025 and December 31, 2024, we report $2.8 million within accrued expenses and the remaining amounts within other long-term liabilities on our Condensed Consolidated Balance Sheets.