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Restructuring Charges | 9 Months Ended
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Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Charges | Restructuring Charges We incurred restructuring charges of $29.4 million and $50.8 million for the quarter and nine months ended September 30, 2020, respectively, in connection with the centralization of our global sales and marketing structure and the reduction of our U.S. workforce. Centralization of Global Sales and Marketing Structure During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). As of September 30, 2020, we incurred $22.9 million restructuring costs and expect to incur $0.5 million additional costs as it relates to the restructuring activities of this strategy. The following table summarizes our restructuring exit costs as it relates to the centralization of our global sales and marketing structure (in thousands):
| Beginning balance January 1, 2020 |  | Accruals |  | Payments |  | Ending balance September 30, 2020 |  | Cumulative Charges Incurred |  | Expected Additional Expenses to be Incurred
Termination benefits | $ | 8,389 |  |  | $ | 3,059 |  |  | $ | 3,125 |  |  | $ | 8,323 |  |  | $ | 11,939 |  |  | $ | — |
Contract termination costs | 338 |  |  | — |  |  | — |  |  | 338 |  |  | 338 |  |  | — |
Other related costs | 2,785 |  |  | 7,847 |  |  | 9,001 |  |  | 1,631 |  |  | 10,655 |  |  | 514 |
Total | $ | 11,512 |  |  | $ | 10,906 |  |  | $ | 12,126 |  |  | $ | 10,292 |  |  | $ | 22,932 |  |  | $ | 514 |
Operating Expense Reduction in Workforce In April 2020, we reduced our US shoreside workforce by approximately 23% through a combination of permanent layoffs and 90-day furloughs with paid benefits. We incurred severance costs of $27.9 million during the nine months ended September 30, 2020, respectively, and do not expect to incur additional costs as it relates to this activity. The following table summarizes our restructuring costs as it relates to the April 2020 reduction in our workforce (in thousands):
| Beginning balance January 1, 2020 |  | Accruals |  | Payments |  | Ending balance September 30, 2020 |  | Cumulative Charges Incurred |  | Expected Additional Expenses to be Incurred
Termination benefits | $ | — |  |  | $ | 27,936 |  |  | $ | 18,570 |  |  | $ | 9,362 |  |  | $ | 27,936 |  |  | $ | — |
Contract termination costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other related costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | — |  |  | $ | 27,936 |  |  | $ | 18,570 |  |  | $ | 9,362 |  |  | $ | 27,936 |  |  | $ | — |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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