RESTRUCTURING COSTS AND ACCRUALS

In February 2016, we committed to a restructuring plan that encompassed a series of measures intended to allow us to more efficiently operate in a leaner, more directed cost structure. These included reductions in our 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 December 31, 2017.

In April 2018, we determined that the estimated sublease rentals for the partially abandoned facilities in Burlington, Massachusetts, can no longer be reasonably obtained because of our plan to recapture the darkened space and the unlikelihood of sublet given the leases will terminate in two years. As a result, we recorded $2.7 million of facility restructuring costs adjustments during the quarter ended March 31, 2018. In addition, we recorded $0.2 million of severance costs adjustments during the quarter ended March 31, 2018.

During the quarter ended March 31, 2017, we recorded restructuring charges of $1.3 million, related to severance costs for the elimination of an additional 44 positions worldwide, and recoveries of $0.5 million related to severance estimate adjustments, and $0.2 million for the partial closure of Pinewood Studios facilities in Iver Heath, United Kingdom.

Restructuring Summary

The following table sets forth restructuring expenses recognized for the three months ended March 31, 2018 and 2017 (in thousands):



	Three Months Ended March 31,
	2018		2017
Employee	$	168	$	676
Facility	2,690		259
Total facility and employee charges	2,858		935
Other	49		48
Total restructuring charges, net	$	2,907	$	983

The following table sets forth the activity in the restructuring accruals for the three months ended March 31, 2018 (in thousands):



	Employee			Facility			Total
Accrual balance as of December 31, 2017	$	1,998		$	2,479		$	4,477
Restructuring charges and revisions	168			2,690			2,858
Accretion	—			55			55
Cash payments	(1,184		)	(1,043		)	(2,227		)
Foreign exchange impact on ending balance	14			—			14
Accrual balance as of March 31, 2018	$	996		$	4,181		$	5,177
Less: current portion	996			2,189			3,185
Long-term accrual balance as of March 31, 2018	$	—		$	1,992		$	1,992

The employee restructuring accrual at March 31, 2018 represents severance costs to former employees that will be paid out within 12 months, and is, therefore, included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheets as of March 31, 2018.

The facility restructuring accrual at March 31, 2018 represents contractual lease payments, net of actual or estimated sublease income, on space vacated as part of our restructuring actions. The leases, and payments against the amounts accrued, extend through 2026 unless we are able to negotiate earlier terminations. Of the total facility restructuring balance, $2.2 million is included in the caption “accrued expenses and other current liabilities” and $2.0 million is included in the caption “other long-term liabilities” in our condensed consolidated balance sheet as of March 31, 2018.