Restructuring

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

15. Restructuring

During 2017, in an effort to further our organizational objectives, including improved operating efficiency, customer outcomes and employee satisfaction, we initiated a multi-year plan to consolidate and relocate some of our existing offices to highly modern and more collaborative workspaces with short-term financial commitments. These workspaces are also more centrally located for our employees and closer to our customers and prospects. Restructuring costs incurred to date and expected to be incurred consist primarily of costs to terminate existing lease agreements, contractual lease payments, net of estimated sublease income, upon vacating space as part of the plan, as well as insignificant costs to relocate affected employees and write-off leasehold improvement assets that we will no longer use. We currently expect to incur before-tax restructuring costs associated with these activities of between $6.0 million and $8.0 million, with substantially all of the remaining costs expected to be incurred by the end of 2019. We also expect to incur employee severance costs related to the plan; however, these costs cannot be reasonably estimated at this time.

The following table summarizes our facilities optimization restructuring costs as of September 30, 2018:



	Costs incurred during the three months ended			Costs incurred during the nine months ended		Cumulative costs incurred as of
(in thousands)	September 30, 2018
By component:
Contract termination costs	$	(1,449	)	$	2,974	$	3,569
Other costs	535			611		810
Total	$	(914	)	$	3,585	$	4,379

During the three months ended September 30, 2018, we adjusted the restructuring liability to write off deferred rent balances for certain leased space that we ceased using in the three months ended June 30, 2018 and September 30, 2018. The change in our liability related to our facilities optimization restructuring during the three and nine months ended September 30, 2018, consisted of the following:



	Accrued at		Increases for incurred costs		Costs paid			Accrued at
(in thousands)	December 31, 2017		Increases for incurred costs		Costs paid			September 30, 2018
By component:
Contract termination costs	$	691	$	2,974	$	(2,327	)	$	1,338
Other costs	—		611		(611		)	—
Total	$	691	$	3,585	$	(2,938	)	$	1,338