8. Restructuring

On February 20, 2018, the Company announced a strategic growth plan to realign its product offerings around its hyperscale and hybrid colocation product offerings, along with technology and services from the Company’s cloud and managed services business that support hyperscale and hybrid colocation customers. As part of the strategic growth plan, the Company narrowed its focus around certain of its cloud and managed services offerings and on April 24, 2018, the Company entered into definitive agreements with General Datatech, L.P. (“GDT”), an international provider of managed IT solutions, pursuant to which the Company agreed to assign to GDT certain assets, contracts and liabilities associated with the Company’s cloud and managed services products. These assets primarily consist of customer contracts and certain physical equipment. As of December 31, 2018, the Company had successfully completed the migration of the associated customers and transitioned impacted assets, contracts and liabilities to GDT. In connection with the definitive agreements, the Company and GDT also agreed to an ongoing relationship where the Company will lease data center space to GDT as well as provide ongoing services to GDT to support the transitioned customers. Expenses associated with the strategic growth plan are included in the “Restructuring” line item on the consolidated statements of operations. The Company does not expect to incur restructuring expenses related to the strategic growth plan during the year ended December 31, 2019.

Restructuring expenses incurred during year ended December 31, 2018 are as follows (in thousands):


				Equity-Based
				Compensation and			Product-Related
	Severance			Professional Fees			and Other			Total
Restructuring expense	$	6,910	(1)	$	7,740	(2)	$	23,293	(3)	$	37,943

(1)

As of December 31, 2018, the outstanding liability for accrued but unpaid severance expense was $0.4 million, which is included in the “Accounts payable and accrued liabilities” line item of the consolidated balance sheets.

(2)

As of December 31, 2018, there was no outstanding liability for accrued but unpaid equity based compensation and professional fees expense.

(3)

Product-related and other expenses primarily relate to impairment write-downs of depreciated property as well as losses incurred on the sale of equipment. As of December 31, 2018, the outstanding liability for accrued but unpaid product related and other expense was $2.3 million, which is included in the “Accounts payable and accrued liabilities” line item of the consolidated balance sheets.

(4)