RESTRUCTURING COSTS AND ACCRUALS

2016 Restructuring Plan

In February 2016, the Company committed to a restructuring plan that encompasses a series of measures intended to allow the Company to more efficiently operate in a leaner, and more directed cost structure. These include reductions in the Company’s workforce, facilities consolidation, transferring certain business processes to lower cost regions, and reducing other third-party services costs.

During the quarter ended December 31, 2015, the Company recorded restructuring costs of $5.8 million, which represented an initial elimination of 111 positions worldwide during January and February of 2016. During the quarter ended March 31, 2016, the Company recorded restructuring costs of $2.8 million, representing the elimination of an additional 63 positions worldwide. During the quarter ended June 30, 2016, the Company recorded additional restructuring costs of $0.4 million, and recoveries totaling $0.6 million as a result of severance pay estimate changes primarily for the eliminated positions in Europe. During the quarter ended September 30, 2016, the Company recorded restructuring charges of $2.4 million related to severance costs for an additional 60 positions eliminated and severance pay estimate adjustments, and $2.1 million for the partial closure of facilities in Burlington, Massachusetts, which included non-cash amounts of $1.1 million for fixed asset write-off. During the quarter ended December 31, 2016, the Company recorded restructuring charges of $5.0 million, related to severance costs for an additional elimination of 156 positions worldwide.

Prior Years’ Restructuring Plans

The Company recorded restructuring costs revisions of $0.5 million and $0.8 million, in June 2015 and September 2016, respectively, based on the updated sublease assumption for the Company’s Mountain View, California facility that was partially abandoned in 2012.

At December 31, 2016, $1.4 million of the facilities-related accrual balance was related to the closure of part of the Company’s Mountain View, California, and Dublin, Ireland facilities under restructuring plans that were made in 2012 and 2008, respectively. No further actions are anticipated under those plans.

Restructuring Summary

The following table sets forth the activity in the restructuring accruals for the years ended December 31, 2016, 2015 and 2014 (in thousands):



	Employee- Related			Facilities- Related & Other			Total
Accrual balance at January 1, 2014	$	2,399		$	6,102		$	8,501
Revisions of estimated liabilities	—			(165		)	(165		)
Accretion	—			565			565
Cash payments	(2,340		)	(4,172		)	(6,512		)
Foreign exchange impact on ending balance	(1		)	(45		)	(46		)
Accrual balance at December 31, 2014	58			2,285			2,343
New restructuring charges – operating expenses	5,766			—			5,766
Revisions of estimated liabilities	—			539			539
Accretion	—			226			226
Cash payments	(315		)	(1,301		)	(1,616		)
Foreign exchange impact on ending balance	—			(78		)	(78		)
Accrual balance at December 31, 2015	5,509			1,671			7,180
New restructuring charges – operating expenses	10,491			943			11,434
Revisions of estimated liabilities	(497		)	763			266
Accretion	—			287			287
Cash payments	(8,225		)	(1,701		)	(9,926		)
Non-cash write-offs	—			1,137			1,137
Foreign exchange impact on ending balance	(260		)	(7		)	(267		)
Accrual balance at December 31, 2016	$	7,018		$	3,093		$	10,111

The employee-related accruals at December 31, 2016 and 2015 represent severance costs to former employees that will be paid out within twelve months, and are, therefore, included in the caption “accrued expenses and other current liabilities” in the Company’s consolidated balance sheets.

The facilities-related and other accruals at December 31, 2016 and 2015 represent contractual lease payments, net of estimated sublease income, on space vacated as part of the Company’s restructuring actions. The leases, and payments against the amounts accrued, extend through 2021 unless the Company is able to negotiate earlier terminations. Of the total facilities-related and other accruals balance, $0.7 million is included in the caption “accrued expenses and other current liabilities,” $1.3 million is included in the caption “other long-term liabilities,” and $1.1 million of fixed asset write-off relating to the partial closure of facilities in Burlington, Massachusetts is reflected in the caption “property and equipment, net” in the Company’s consolidated balance sheet at December 31, 2016. At December 31, 2015, $1.0 million was included in the caption “accrued expenses and other current liabilities” and $0.6 million was included in the caption “other long-term liabilities.”