Restructuring

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring

In response to the COVID-19 pandemic, the Company went through a re-evaluation of its real estate needs. In connection with this re-evaluation, and the success the Company has had working remotely, it was decided in July 2020 that the Company would significantly reduce the real estate space it leases. This decision resulted in the significant reduction of the real estate space the Company leases and the removal of the associated right of use assets. Furthermore, this resulted in various one-time expenses in connection with the abandonment of the majority of the Company’s leased facilities. The lease restructuring costs noted below are a result of this transition to an employee-centric model.

On top of the lease restructuring costs, the Company went through a further restructuring related to costs associated with re-prioritizing and reallocating resources to focus on areas believed by management to show high growth potential.

The following table presents the detail of expenses for the Company’s restructuring charges for the periods presented:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Lease restructuring costs:
Right of use assets write down	$	—	$	13,938	$	—	$	13,938
Abandonment of property and equipment	—		5,147		—		5,147
Other lease restructuring costs	44		4,976		594		4,976
Total lease restructuring costs	$	44	$	24,061	$	594	$	24,061
Severance and other compensation associated costs	$	—	$	2,381	$	2,675	$	5,574
Total restructuring costs	$	44	$	26,442	$	3,269	$	29,635

The Company expects to incur additional restructuring costs through December 31, 2021. The restructuring liability was approximately $1.8 million and $4.7 million as of September 30, 2021 and December 31, 2020, respectively. It is classified as accrued expenses and other current liabilities on the condensed consolidated balance sheets, as the liability is expected to be settled in the next 12 months.

The following table presents the detail of the liability for the Company’s restructuring charges for the periods presented:

	September 30, 2021		December 31, 2020
	(In thousands)
Balance, beginning of the year	$	4,732	$	314
Lease restructuring costs	594		5,034
Severance and other compensation associated costs	2,675		5,090
Cash payments	(6,181)		(5,706)
Balance, end of period	$	1,820	$	4,732