Other

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in “Depreciation and amortization” in our Consolidated Statements of Operations was $15.7 million, $12.8 million and $11.5 million for the fiscal years ended December 30, 2018, December 31, 2017 and December 25, 2016, respectively. The unamortized computer software costs were $29.5 million and $28.1 million as of December 30, 2018, and December 31, 2017, respectively.

Headquarters Redesign and Consolidation

In December 2016, we announced plans to redesign our headquarters building, consolidate our space within a smaller number of floors and lease the additional floors to third parties. We incurred $4.5 million and $10.1 million of total costs related to these measures for the fiscal year ended December 30, 2018, and December 31, 2017, respectively. We capitalized approximately $15 million and $62 million for the fiscal year ended December 30, 2018, and December 31, 2017, respectively. This project is substantially complete as of December 30, 2018.

Marketing Expenses

Marketing expense to promote our brand and products and grow our subscriber base (which we formerly referred to as advertising expense) was $156.3 million, $118.6 million and $89.8 million for the fiscal years ended December 30, 2018, December 31, 2017 and December 25, 2016, respectively. We expense our marketing costs as incurred.

Statement of Cash Flow

Restricted Cash

A reconciliation of cash, cash equivalents and restricted cash as of December 30, 2018 and December 31, 2017 from the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows is as follows:



(In thousands)	December 30, 2018		December 31, 2017

Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	241,504	$	182,911
Restricted cash included within other current assets	642		375
Restricted cash included within miscellaneous assets	17,653		17,650
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$	259,799	$	200,936

Substantially all of the amount included in restricted cash is set aside to collateralize workers’ compensation obligations.

Tax Shortfall and/or Windfall for Stock-based Payments

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation-Stock Compensation,” which provides guidance on accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance became effective for the Company for fiscal years beginning after December 25, 2016.

As a result of the adoption of ASU 2016-09 in the first quarter of 2017, we recognized excess tax windfalls in income tax expense rather than additional paid-in capital. Excess tax shortfalls and/or windfalls for stock-based payments are now included in net cash from operating activities rather than net cash from financing activities. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted.

Severance Costs

We recognized severance costs of $6.7 million for the fiscal year ended December 30, 2018. On May 31, 2017, we announced certain measures designed to streamline our editing process and allow us to make further investments in the newsroom. These measures resulted in a workforce reduction primarily affecting our newsroom. We recognized severance costs of $23.9 million in 2017, substantially all of which were related to this workforce reduction. We recognized severance costs of $18.8 million in 2016. These costs are recorded in “Selling, general and administrative costs” in our Consolidated Statements of Operations.

Additionally, during the second quarter of 2016, we announced certain measures to streamline our international print operations and support future growth efforts. These measures included a redesign of our international print newspaper and the relocation of certain editing and production operations conducted in Paris to our locations in Hong Kong and New York. During 2016, we incurred $2.9 million and $11.9 million, respectively, of total costs related to the measures, primarily related to relocation and severance charges. These costs were recorded in “Restructuring charge” in our Consolidated Statements of Operations. In connection with the adoption of ASU 2017-07, $1.7 million related to a gain from the pension curtailment previously included within “Restructuring charge” was reclassified to “Other components of net periodic benefit costs”.

We had a severance liability of $8.4 million and $18.8 million included in “Accrued expenses and other” in our Consolidated Balance Sheets as of December 30, 2018 and December 31, 2017, respectively. We anticipate most of the payments will be made within the next twelve months.