Restructuring

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

19. 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 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 $8.5 million and $9.5 million, of which $5.4 million have been incurred through 2018. We expect that a significant portion of the remaining costs expected will be incurred in 2019. Our updated estimates reflect the more aggressive actions taken to relocate and consolidate some of our offices than we had originally anticipated. 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 December 31, 2018:



	Costs incurred during the year ended		Cumulative costs incurred as of
(in thousands)	December 31, 2018
By component:
Contract termination costs	$	3,581	$	4,176
Other costs	1,009		1,208
Total	$	4,590	$	5,384

The change in our liability related to our facilities optimization restructuring during the twelve months ended December 31, 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			December 31, 2018
By component:
Contract termination costs	$	691	$	3,581	$	(2,407	)	$	1,865
Other costs	—		1,009		(959		)	50
Total	$	691	$	4,590	$	(3,366	)	$	1,915