RESTRUCTURING COSTS AND ACCRUALS

2016 Restructuring Plan

In February 2016, the Company committed to a restructuring plan that encompassed a series of measures intended to allow the Company to more efficiently operate in a leaner, more directed cost structure. These included reductions in the Company’s workforce, consolidation of facilities, transfers of certain business processes to lower cost regions, and reductions in other third-party services costs. The cost efficiency program was substantially complete as of June 30, 2017.

During the three and twelve months ended December 31, 2016, the Company recorded costs of $5.0 million and $12.8 million, respectively. The restructuring charges for the twelve months ended December 31, 2016 included $10.0 million for the severance costs and estimate adjustments related to approximately 279 terminated employees and $2.8 million for the closure of certain excess facility space, including $1.1 million of leasehold improvement write-offs and $0.8 million adjustments related to sublease assumptions associated with the Company’s Mountain View, California facility.

During the three and twelve months ended December 31, 2017, the Company recorded costs of $0.6 million and $7.1 million, respectively. The restructuring charges for the twelve months ended December 31, 2017 included $3.1 million for the severance costs related to approximately 102 positions eliminated during 2017 and the first quarter of 2018, recoveries of $1.1 million as a result of revised severance estimates, and $5.1 million for the closure of certain excess facility space, including $3.2 million of leasehold improvement write-offs.

Restructuring Summary

The following table sets forth the activity in the restructuring accruals for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	Employee- Related			Facilities- Related & Other			Total
Accrual balance at January 1, 2015	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
New restructuring charges – operating expenses	3,095			1,526			4,621
Revisions of estimated liabilities	(1,087		)	334			(753		)
Accretion	—			325			325
Cash payments	(6,750		)	(4,252		)	(11,002		)
Non-cash write-offs	—			3,191			3,191
Foreign exchange impact on ending balance	(65		)	16			(49		)
Accrual balance at December 31, 2017	$	2,211		$	4,233		$	6,444

The employee-related accruals at December 31, 2017 and 2016 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, 2017 and 2016 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 2026 unless the Company is able to negotiate earlier terminations. Of the total facilities-related and other accruals balance, $0.3 million is included in the caption “accrued expenses and other current liabilities,” $0.7 million is included in the caption “other long-term liabilities,” and $3.2 million of fixed asset write-off relating to partial closures of facilities in Mountain View, California, Burlington, Massachusetts, and closure of facilities in Taipei, Taiwan and Boca Raton, Florida is reflected in the caption “property and equipment, net” in the Company’s consolidated balance sheet at December 31, 2017. At December 31, 2016, $0.7 million was included in the caption “accrued expenses and other current liabilities”, $1.3 million was 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 was reflected in the caption “property and equipment, net” in the Company’s consolidated balance sheet.