RESTRUCTURING AND RELATED CHARGES

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

In April 2020, the Board approved a multi-phase restructuring plan of up to $105.0 million of total pretax charges related to our previously announced strategic shift and as part of the cost cutting measures implemented in response to the impact of COVID-19 on our business. We expect to incur total pretax charges of up to $105.0 million through the end of 2021 and have incurred cumulative Restructuring and related charges of $99.0 million since the inception of the restructuring plan. Our restructuring plan includes workforce reductions of approximately 1,600 positions globally, the exit or discontinuation of the use of certain leases and other assets, impairments of our right-of-use and other long-lived assets, and the exit of our operations in Japan and New Zealand. In the first quarter 2021, we substantially liquidated our subsidiary in Japan and reclassified $32.3 million of cumulative foreign currency translation gains into earnings, which is presented in Other income (expense), net on the condensed consolidated statements of operations for the nine months ended September 30, 2021.

The majority of our restructuring charges are expected to be paid in cash and primarily relate to employee severance and benefits expenses, facilities-related costs and professional advisory fees. We will continue to evaluate our cost structure, including additional workforce reductions, as part of our restructuring plan. Costs incurred related to the restructuring plan are classified as Restructuring and related charges on the condensed consolidated statements of operations.

The following tables summarize costs incurred by segment related to the restructuring plans for the three and nine months ended September 30, 2021 and 2020 (in thousands):


	Three Months Ended September 30, 2021
	Employee Severance and Benefit Costs (Credits)		Legal and Advisory Costs		Property, Equipment and Software Impairments		Right-of-Use Assets Impairments and Lease-related Charges (Credits)		Total Restructuring Charges (Credits)
North America	$	26	$	251	$	602	$	5,610	$	6,489
International	2,600		571		268		2,555		5,994
Consolidated	$	2,626	$	822	$	870	$	8,165	$	12,483


	Nine Months Ended September 30, 2021
	Employee Severance and Benefit Costs (Credits)		Legal and Advisory Costs		Property, Equipment and Software Impairments		Right-of-Use Assets Impairments and Lease-related Charges (Credits)		Total Restructuring Charges (Credits)
North America	$	458	$	1,482	$	602	$	6,974	$	9,516
International	21,665		599		268		2,102		24,634
Consolidated	$	22,123	$	2,081	$	870	$	9,076	$	34,150


	Three Months Ended September 30, 2020
	Employee Severance and Benefit Costs (Credits)		Legal and Advisory Costs		Property, Equipment and Software Impairments		Right-of-Use Assets Impairments and Lease-related Charges (Credits)		Total Restructuring Charges (Credits)
North America	$	1,489	$	435	$	70	$	736	$	2,730
International	14,400		18		195		3,216		17,829
Consolidated	$	15,889	$	453	$	265	$	3,952	$	20,559


	Nine Months Ended September 30, 2020
	Employee Severance and Benefit Costs (Credits)		Legal and Advisory Costs		Property, Equipment and Software Impairments		Right-of-Use Assets Impairments and Lease-related Charges (Credits)		Total Restructuring Charges (Credits)
North America	$	17,548	$	443	$	4,790	$	10,047	$	32,828
International	23,041		759		227		4,182		28,209
Consolidated	$	40,589	$	1,202	$	5,017	$	14,229	$	61,037

As a part of our restructuring plan, we terminated or modified several of our leases. In other cases we vacated our leased facilities, and some of those facilities are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases. We recognized $7.7 million in impairment related to those leases during the three and nine months ended September 30, 2021, and $3.3 million and $17.2 million during the three and nine months ended September 30, 2020. See Note 2, Goodwill and Long-Lived Assets, for additional information. Rent expense, including amortization of the right-of-use asset and accretion of the operating lease liability, sublease income, termination and modification gains and losses, and other variable lease costs related to the leased facilities vacated as part of our restructuring plan are presented within Restructuring and related charges in the condensed consolidated statements of operations. The current and non-current liabilities associated with these leases continue to be presented within Other current liabilities and Operating lease obligations in the condensed consolidated balance sheets.

The following table summarizes restructuring liability activity for each period (in thousands):


	Employee Severance and Benefit Costs		Legal and Advisory Costs		Total
Balance as of December 31, 2019 (1)	$	699	$	—	$	699
Charges payable in cash (2)	36,266		2,137		38,403
Cash payments	(25,328)		(1,289)		(26,617)
Foreign currency translation	1,660		(14)		1,646
Balance as of December 31, 2020	13,297		834		14,131
Charges payable in cash	22,123		2,081		24,204
Cash payments	(24,670)		(2,588)		(27,258)
Foreign currency translation	(768)		77		(691)
Balance as of September 30, 2021 (3)	$	9,982	$	404	$	10,386

(1)Amounts included in the year ended December 31, 2019 are related to prior restructuring plans and the liabilities under those plans have been substantially settled.

(2)Excludes stock-based compensation of $1.7 million related to accelerated vesting of stock-based compensation awards for certain employees terminated as a result of our restructuring activities.

(3)Includes employee severance and benefit costs related to the termination of employees. Substantially all of the remaining cash payments for those costs are expected to be disbursed through 2022.