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RESTRUCTURING AND INTEGRATION EXPENSE | 12 Months Ended
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Dec. 31, 2021
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND INTEGRATION EXPENSE | Restructuring and integration expense consists of costs related to the consolidation and migration of certain applications and processes, including our financial and sales management systems. It also includes costs related to the integration of acquired businesses into our systems and processes. These costs primarily consist of information technology consulting, project management services and internal labor, as well as other costs associated with our initiatives, such as training, travel and relocation and costs associated with facility closures. In addition, we recorded employee severance costs related to these initiatives, as well as our ongoing cost reduction initiatives across functional areas. We are currently pursuing several initiatives designed to focus on our growth strategy and to increase our efficiency. Restructuring and integration expense is not allocated to our reportable business segments. Restructuring and integration expense is reflected on the consolidated statements of income (loss) as follows for the years ended December 31:
(in thousands) |  | 2021 |  | 2020 |  | 2019
Total cost of revenue |  | $ | 4,197 |  |  | $ | 3,465 |  |  | $ | 3,562 |
Operating expenses |  | 54,750 |  |  | 75,874 |  |  | 71,248 |
Restructuring and integration expense |  | $ | 58,947 |  |  | $ | 79,339 |  |  | $ | 74,810 |
Restructuring and integration expense was comprised of the following for the years ended December 31:
(in thousands) |  | 2021 |  | 2020 |  | 2019
External consulting fees |  | $ | 26,676 |  |  | $ | 44,096 |  |  | $ | 45,638 |
Employee severance benefits |  | 9,076 |  |  | 17,628 |  |  | 10,865 |
Internal labor |  | 7,948 |  |  | 7,568 |  |  | 12,115 |
Other |  | 15,247 |  |  | 10,047 |  |  | 6,192 |
Restructuring and integration expense |  | $ | 58,947 |  |  | $ | 79,339 |  |  | $ | 74,810 |
Our restructuring and integration accruals are included in accrued liabilities on the consolidated balance sheets and represent expected cash payments required to satisfy the remaining severance obligations to those employees already terminated and those expected to be terminated under our various initiatives. The majority of the employee reductions are expected to be completed in the first quarter of 2022, and we expect most of the related severance payments to be paid in the first half of 2022, utilizing cash from operations. Changes in our restructuring and integration accruals were as follows:
(in thousands) |  | Employee severance benefits |  | Operating lease obligations |  | Total
Balance, December 31, 2018 |  | $ | 3,179 |  |  | $ | 282 |  |  | $ | 3,461 |
Charges |  | 11,516 |  |  | — |  |  | 11,516 |
Reversals |  | (651) |  |  | — |  |  | (651) |
Payments |  | (10,585) |  |  | — |  |  | (10,585) |
Adoption of ASU No. 2016-02(1) |  | — |  |  | (282) |  |  | (282) |
Balance, December 31, 2019 |  | 3,459 |  |  | — |  |  | 3,459 |
Charges |  | 19,025 |  |  | — |  |  | 19,025 |
Reversals |  | (1,397) |  |  | — |  |  | (1,397) |
Payments |  | (14,289) |  |  | — |  |  | (14,289) |
Balance, December 31, 2020 |  | 6,798 |  |  | — |  |  | 6,798 |
Charges |  | 10,897 |  |  | — |  |  | 10,897 |
Reversals |  | (1,821) |  |  | — |  |  | (1,821) |
Payments |  | (10,202) |  |  | — |  |  | (10,202) |
Balance, December 31, 2021 |  | $ | 5,672 |  |  | $ | — |  |  | $ | 5,672 |
(1) Upon adoption of ASU No. 2016-02, Leasing, and related amendments on January 1, 2019, our operating lease obligation accrual was reversed and the related operating lease asset was analyzed for impairment in accordance with the new guidance. The charges and reversals presented in the rollforward of our restructuring and integration accruals do not include items charged directly to expense as incurred, as those items are not reflected in accrued liabilities on the consolidated balance sheets. Chief Executive Officer (CEO) transition costs – In 2018, we announced the retirement of our former CEO. In connection with the transition, we incurred various costs, including retention payments to certain members of our management team, consulting fees related to the evaluation of our strategy and our current CEO's signing bonus. These costs totaled $9,390 for 2019 and were included in SG&A expense on the consolidated statement of loss.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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