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Restructuring and integration expense (Tables)
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Components of restructuring and integration expense
Restructuring and integration expense for each period consisted of the following components:
 
 
Quarter Ended
June 30,
 
Six Months Ended
June 30,
(in thousands, except number of employees)
 
2019
 
2018
 
2019
 
2018
Severance accruals
 
$
2,913

 
$
3,804

 
$
5,146

 
$
4,648

Severance reversals
 
(216
)
 
(95
)
 
(385
)
 
(230
)
Net accruals
 
2,697

 
3,709


4,761


4,418

Other costs
 
14,800

 
2,662

 
19,019

 
4,275

Restructuring and integration expense
 
$
17,497

 
$
6,371


$
23,780


$
8,693

Number of employees included in severance accruals
 
40

 
80

 
90

 
105


Restructuring and integration expense is reflected in the consolidated statements of comprehensive income as follows:
 
 
Quarter Ended
June 30,
 
Six Months Ended
June 30,
(in thousands)
 
2019
 
2018
 
2019
 
2018
Total cost of revenue
 
$
155

 
$
736

 
$
946

 
$
913

Operating expenses
 
17,342

 
5,635

 
22,834

 
7,780

Restructuring and integration expense
 
$
17,497

 
$
6,371


$
23,780


$
8,693
Restructuring and integration accruals, initiatives summarized by year

Restructuring accruals, summarized by year, were as follows:
(in thousands)
 
2019
 initiatives
 
2018
 initiatives
 
2017
initiatives
 
Total
Balance, December 31, 2018
 
$
—

 
$
3,448

 
$
13

 
$
3,461

Charges
 
5,038

 
108

 
—

 
5,146

Reversals
 
(69
)
 
(303
)
 
(13
)
 
(385
)
Payments
 
(1,225
)
 
(2,430
)
 
—

 
(3,655
)
Adoption of ASU No. 2016-02(1)
 
—

 
(282
)
 
—

 
(282
)
Balance, June 30, 2019
 
$
3,744

 
$
541

 
$
—

 
$
4,285

Cumulative amounts:
 
 

 
 
 
 
 
 

Charges
 
$
5,038

 
$
8,244

 
$
7,355

 
$
20,637

Reversals
 
(69
)
 
(1,715
)
 
(726
)
 
(2,510
)
Payments
 
(1,225
)
 
(5,706
)
 
(6,629
)
 
(13,560
)
Adoption of ASU No. 2016-02(1)
 
—

 
(282
)
 
—

 
(282
)
Balance, June 30, 2019
 
$
3,744


$
541

 
$
—

 
$
4,285



(1) Upon adoption of ASU No. 2016-02, Leasing, on January 1, 2019 (Note 2), our operating lease obligations accrual was reversed and the related operating lease asset was analyzed for impairment in accordance with the new guidance.
Restructuring and integration accruals, by segment
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(1)
 
Small Business Services
 
Financial Services
 
Total
Balance, December 31, 2018
 
$
1,326

 
$
1,397

 
$
—

 
$
456

 
$
282

 
$
—

 
$
3,461

Charges
 
1,198

 
1,429

 
114

 
2,405

 
—

 
—

 
5,146

Reversals
 
(113
)
 
(96
)
 
—

 
(176
)
 
—

 
—

 
(385
)
Payments
 
(1,242
)
 
(1,686
)
 
(48
)
 
(679
)
 
—

 
—

 
(3,655
)
Adoption of ASU No. 2016-02(2)
 
—

 
—

 
—

 
—

 
(282
)
 
—

 
(282
)
Balance, June 30, 2019
 
$
1,169

 
$
1,044


$
66


$
2,006


$
—

 
$
—

 
$
4,285

Cumulative amounts:(3)
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Charges
 
$
5,737

 
$
7,595

 
$
257

 
$
6,428

 
$
329

 
$
291

 
$
20,637

Reversals
 
(717
)
 
(1,303
)
 
(5
)
 
(414
)
 
—

 
(71
)
 
(2,510
)
Payments
 
(3,851
)
 
(5,248
)
 
(186
)
 
(4,008
)
 
(47
)
 
(220
)
 
(13,560
)
Adoption of ASU No. 2016-02(2)
 
—

 
—

 
—

 
—

 
(282
)
 
—

 
(282
)
Balance, June 30, 2019
 
$
1,169

 
$
1,044


$
66


$
2,006


$
—

 
$
—

 
$
4,285


(1) As discussed in Note 16, corporate costs are allocated to our business segments. As such, the net corporate charges are reflected in the business segment operating income presented in Note 16 in accordance with our allocation methodology.

(2) Upon adoption of ASU No. 2016-02, Leasing, on January 1, 2019 (Note 2), our operating lease obligations accrual was reversed and the related operating lease asset was analyzed for impairment in accordance with the new guidance.

(3) Includes accruals related to our cost reduction initiatives for 2017 through 2019.