RESTRUCTURING

The Company has implemented multiple restructuring plans to reduce its cost structure, align resources with its product strategy and improve efficiency, which has resulted in workforce reductions and the consolidation of certain leased facilities.

For the three and nine months ended September 30, 2018 and 2017, restructuring charges from continuing operations were comprised of the following (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Employee severance and related costs	$	22		$	1,895	$	2,341	$	10,448
Consolidation of leased facilities	(508		)	6,657		10,797		8,408
Reversal of previous charges	—			—		—		(178		)
Total Restructuring charges	$	(486	)	$	8,552	$	13,138	$	18,678

During the three and nine months ended September 30, 2018, the Company incurred costs related to its initiatives intended to accelerate the transformation to a cloud-based subscription business, increase strategic focus, and improve operational efficiency. Total costs incurred for the three months ended September 30, 2018 were not material. During the nine months ended September 30, 2018, the Company incurred costs of $2.3 million.

In connection with its restructuring initiatives, the Company had previously vacated or consolidated properties and subsequently reassessed its obligations on non-cancelable leases. The fair value estimate of these non-cancelable leases is based on the contractual lease costs over the remaining term, partially offset by estimated future sublease rental income. As a result of a reassessment, during the three months ended September 30, 2018, the Company recorded a credit of $0.5 million as a reversal of the original estimated charge, which decreased restructuring charges related to the lease exit costs. In addition, during the nine months ended September 30, 2018, the Company incurred costs of $10.8 million, related to the consolidation of leased facilities. The charges related to employee severance were substantially completed as of the first quarter of 2018; however, the Company could continue to incur lease losses related to the consolidation of leased facilities during fiscal year 2018.

Restructuring accruals

The activity in the Company’s restructuring accruals for the nine months ended September 30, 2018 is summarized as follows (in thousands):



	Total
Balance at January 1, 2018	$	55,283
Restructuring charges	13,138
Payments	(23,525		)
Balance at September 30, 2018	$	44,896

As of September 30, 2018, the $44.9 million in outstanding restructuring accruals primarily relate to future payments for leased facilities.