Restructuring Costs

12 Months Ended

Dec. 31, 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 leased by the Company and the removal of the associated ROU 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 workforce model that does not rely on traditional offices.

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 expenses associated with these restructuring events were approximately $3.4 million, $29.4 million, and $2.0 million during the years ended December 31, 2021, 2020, and 2019, respectively, and are classified in the consolidated statements of operations as restructuring costs. The restructuring liability was approximately $1.7 million and $4.7 million as of December 31, 2021 and 2020, respectively, and is classified as accrued expenses and other current liabilities on the 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:


	December 31,
	2021		2020
	(In thousands)
Balance at January 1	$	4,732	$	314
Lease restructuring costs	724		5,034
Severance and other associated costs	2,673		5,090
Cash payments	(6,435)		(5,706)
Balance at December 31	$	1,694	$	4,732

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


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Lease restructuring costs:
ROU assets write down	$	—	$	13,938	$	—
Abandonment of property and equipment	—		5,147		—
Other lease restructuring costs	724		5,245		—
Total lease restructuring costs	724		24,330		—

Severance and other associated costs	2,673		5,090		2,043
Total restructuring costs	$	3,397	$	29,420	$	2,043