Restructuring charges

Net restructuring charges for each period consisted of the following components:



	Quarter Ended June 30,						Six Months Ended June 30,
(in thousands)	2015			2014			2015			2014
Severance accruals	$	1,307		$	1,122		$	2,050		$	2,667
Severance reversals	(170		)	(285		)	(694		)	(595		)
Net restructuring accruals	1,137			837			1,356			2,072
Other costs	17			87			62			2,384
Net restructuring charges	$	1,154		$	924		$	1,418		$	4,456

The net restructuring charges are reflected in the consolidated statements of comprehensive income as follows:



	Quarter Ended June 30,					Six Months Ended June 30,
(in thousands)	2015		2014			2015		2014
Total cost of revenue	$	188	$	(90	)	$	185	$	142
Operating expenses	966		1,014			1,233		4,314
Net restructuring charges	$	1,154	$	924		$	1,418	$	4,456

During the quarters and six months ended June 30, 2015 and June 30, 2014, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continue to reduce costs, primarily within our sales and marketing, information technology and fulfillment functions. The restructuring accruals included severance benefits for approximately 110 employees during the quarter ended June 30, 2015, 25 employees during the quarter ended June 30, 2014, 150 employees during the six months ended June 30, 2015 and 65 employees during the six months ended June 30, 2014. These charges were reduced by the reversal of restructuring accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as information technology costs, employee and equipment moves, training and travel related to our restructuring activities.

Restructuring accruals of $2,022 as of June 30, 2015 and $4,276 as of December 31, 2014 are reflected in the consolidated balance sheet in accrued liabilities. The majority of the employee reductions are expected to be completed in the third quarter of 2015, and we expect most of the related severance payments to be paid by the first quarter of 2016, utilizing cash from operations. As of June 30, 2015, approximately 105 employees had not yet started to receive severance benefits. Further information regarding our restructuring accruals can be found under the caption “Note 8: Restructuring charges” in the Notes to Consolidated Financial Statements appearing in the 2014 Form 10-K.

Accruals for our restructuring initiatives, summarized by year, were as follows:



(in thousands)	2012 initiatives			2013 initiatives			2014 initiatives			2015 initiatives			Total
Balance, December 31, 2014	$	32		$	128		$	4,116		$	—		$	4,276
Restructuring charges	—			—			85			1,965			2,050
Restructuring reversals	—			(9		)	(659		)	(26		)	(694		)
Payments	(32		)	(78		)	(3,012		)	(488		)	(3,610		)
Balance, June 30, 2015	$	—		$	41		$	530		$	1,451		$	2,022
Cumulative amounts:
Restructuring charges	$	8,012		$	7,629		$	8,225		$	1,965		$	25,831
Restructuring reversals	(1,363		)	(1,005		)	(1,301		)	(26		)	(3,695		)
Payments	(6,649		)	(6,583		)	(6,394		)	(488		)	(20,114		)
Balance, June 30, 2015	$	—		$	41		$	530		$	1,451		$	2,022

The components of our restructuring accruals, by segment, were as follows:



	Employee severance benefits												Operating lease obligations
(in thousands)	Small Business Services			Financial Services			Direct Checks			Corporate			Small Business Services			Direct Checks			Total
Balance, December 31, 2014	$	1,412		$	1,848		$	—		$	984		$	32		$	—		$	4,276
Restructuring charges	1,004			572			—			474			—			—			2,050
Restructuring reversals	(378		)	(113		)	—			(203		)	—			—			(694		)
Inter-segment transfer	28			(28		)	—			—			—			—			—
Payments	(1,260		)	(1,713		)	—			(605		)	(32		)	—			(3,610		)
Balance, June 30, 2015	$	806		$	566		$	—		$	650		$	—		$	—		$	2,022
Cumulative amounts⁽¹⁾:
Restructuring charges	$	9,447		$	7,357		$	585		$	7,830		$	442		$	170		$	25,831
Restructuring reversals	(1,677		)	(688		)	(59		)	(1,114		)	(157		)	—			(3,695		)
Inter-segment transfer	28			(28		)	(25		)	25			—			—			—
Payments	(6,992		)	(6,075		)	(501		)	(6,091		)	(285		)	(170		)	(20,114		)
Balance, June 30, 2015	$	806		$	566		$	—		$	650		$	—		$	—		$	2,022

⁽¹⁾Includes accruals related to our cost reduction initiatives for 2012 through 2015.