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Restructuring charges
9 Months Ended
Sep. 30, 2017
Restructuring and Related Activities [Abstract]  
Restructuring charges
Restructuring charges
Restructuring charges for each period were as follows:
 
Nine months ended
(in thousands)
September 30,
2017
 
September 30,
2016
Cost of revenue
$
458

 
$
364

Research and development
8,406

 
2,655

Sales and marketing
5,960

 
2,678

General and administrative
1,964

 
811

Total restructuring charges
$
16,788

 
$
6,508


First quarter 2017 restructuring
On March 15, 2017, the Company approved a restructuring to further reduce future operating expenses and better align resources around its long-term business strategy. The restructuring provided for a reduction of employee headcount and open positions, eliminating a total of approximately 270 positions, as well as the consolidation of certain leased office facilities. In the first nine months of 2017, the Company recorded restructuring charges of $13.6 million, including $10.4 million related to severance and $3.2 million related to accelerated depreciation and other charges. The actions associated with the first quarter 2017 restructuring are expected to be substantially completed in the fourth quarter of 2017. While the Company anticipates that any additional charges related to this restructuring will be immaterial, actual results may differ from current estimates as it relates to the consolidation of certain leased office facilities.
The following table provides a summary of the Company's restructuring activities for the first nine months of 2017 and the related liabilities recorded in accrued liabilities on the condensed consolidated balance sheet.
(in thousands)
Severance
 
Other
 
Total
Restructuring liability as of December 31, 2016
$

 
$

 
$

Restructuring charges
10,435

 
3,171

 
13,606

Cash paid
(9,103
)
 
(71
)
 
(9,174
)
Non-cash reductions
(803
)
 
(2,925
)
 
(3,728
)
Restructuring liability as of September 30, 2017
$
529

 
$
175

 
$
704


Fourth quarter 2016 restructuring
On November 29, 2016, the Company approved a restructuring to reduce future operating expenses. The restructuring provided for a reduction of the Company's global workforce of approximately 15%, the closure of the Company’s entertainment group to concentrate on its core business and the consolidation of certain leased office facilities. Under the fourth quarter 2016 restructuring, the Company has recorded cumulative charges of $40.7 million, including $3.2 million related to severance, facilities contract terminations in the nine months ended September 30, 2017. The fourth quarter 2016 restructuring actions were completed by March 31, 2017, with only small incremental charges recorded through the third quarter of 2017.
The following table provides a summary of the Company's restructuring activities for the first nine months of 2017 and the related liabilities recorded in accrued liabilities on the condensed consolidated balance sheet.
(in thousands)
Severance
 
Other
 
Total
Restructuring liability as of December 31, 2016
$
9,660

 
$
879

 
$
10,539

Restructuring charges
2,127

 
1,055

 
3,182

Cash paid
(11,363
)
 
(1,884
)
 
(13,247
)
Non-cash reductions

 

 

Restructuring liability as of September 30, 2017
$
424

 
$
50

 
$
474


First quarter 2016 restructuring
On January 12, 2016, the Company approved a restructuring that provided for a reduction in the Company’s global workforce of approximately 7%. The Company incurred aggregate restructuring expenses of $6.5 million in the first quarter of 2016, which primarily included cash-based severance costs. The plan was completed as of March 31, 2016 and all costs have been paid. No charges were recorded in periods after March 31, 2016.