RESTRUCTURING ACCRUALS

The Company recorded restructuring expense aggregating $17.0 million in the year ended December 31, 2018, $9.4 million in the year ended December 31, 2017 and $2.7 million in the year ended December 31, 2016.

Merger Restructuring Initiative

In connection with the Merger, the Company's management approved a restructuring plan in the fourth quarter of 2017 to eliminate certain redundant positions and facilities within the combined companies (the "Merger Restructuring Initiative"). In connection with this initiative, the Company recorded $8.5 million of restructuring expense in 2017 for severance and related costs for approximately 120 employees. The Company recorded $16.1 million of additional restructuring expense in 2018 in connection with this initiative, comprised of $14.7 million for severance for approximately 275 additional employees and $1.4 million for redundant facilities in the Czech Republic, Canada and the U.S. as it continues to combine the two businesses and benefit from operational synergies. The Company believes that the severance payments for the currently recorded accruals will be paid in 2019 and that the payments related to restructured facilities will be completed in 2029, when the last of the leases for these restructured facilities expires. The Company anticipates it will record additional future expense in connection with this initiative for headcount and redundant facilities aggregating approximately $5 million.

Summaries of the Merger Restructuring Initiative accrual activity for the years ended December 31, 2018 and 2017 are as follows (in thousands):



Year ended December 31, 2018	Balance at January 1, 2018		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2018
Severance	$	7,595	$	14,735	$	(5	)	$	(20,415	)	$	1,910
Facilities	—		1,399		—			(628		)	771
	$	7,595	$	16,134	$	(5	)	$	(21,043	)	$	2,681



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2017
Severance	$	—	$	8,508	$	—	$	(913	)	$	7,595

Assumed Restructuring Initiative

The Company assumed GENBAND's previously recorded restructuring liability, totaling $4.1 million, on the Merger Date (the "GENBAND Restructuring Initiative"). Of this amount, $3.7 million related to severance and related costs and $0.4 million related to facilities. The Company recorded $0.9 million of restructuring expense in 2018 and a credit of $0.3 million credit to restructuring expense in 2017 for changes in estimated costs for this previously recorded and assumed restructuring initiative, primarily changes in negotiated severance to employees in certain international locations and changes in estimated sublease income for restructured facilities. The Company does not expect to record additional expense in connection with this initiative with the exception of any additional adjustments for changes in estimated costs. The Company expects that the payments related to this assumed liability will be completed in 2020.

Summaries of the GENBAND Restructuring Initiative accrual activity for the years ended December 31, 2018 and 2017 are as follows (in thousands):



Year ended December 31, 2018	Balance at January 1, 2018		Liability assumed in connection with Merger		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2018
Severance	$	1,916	$	—	$	—	$	487	$	(2,403	)	$	—
Facilities	205		—		—		399		(487		)	117
	$	2,121	$	—	$	—	$	886	$	(2,890	)	$	117



Year ended December 31, 2017	Balance at January 1, 2017		Liability assumed in connection with Merger		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	—	$	3,663	$	—	$	(158	)	$	(1,589	)	$	1,916
Facilities	—		431		—		(123		)	(103		)	205
	$	—	$	4,094	$	—	$	(281	)	$	(1,692	)	$	2,121

2016 Restructuring Initiative

In July 2016, the Company announced a program (the "2016 Restructuring Initiative") to further accelerate its investment in new technologies, as the communications industry migrates to a cloud-based architecture and as the Company pursues new strategic initiatives, such as new products and an expanded go-to-market footprint in selected geographies and discrete vertical markets. The Company recorded $2.0 million of restructuring expense in the aggregate in connection with this initiative, comprised of $1.9 million for severance and related costs and $0.1 million to abandon its facility in Rochester, New York (the "Rochester Facility"). The actions under the 2016 Restructuring Initiative have been implemented and accordingly, the Company does not expect to record additional expense in connection with this initiative. The amounts accrued for severance and related costs had been fully paid by the end of the third quarter of 2017. The Company expects that the amounts accrued for facilities will be paid by the end of October 2019, when the lease on the Rochester Facility expires.

In connection with the 2016 Restructuring Initiative, the Company recorded $0.5 million of restructuring expense in the year ended December 31, 2017, including adjustments for changes in estimated costs, comprised of $0.4 million for severance and related costs and $0.1 million related to the Company's Rochester Facility. The Company recorded $1.5 million of expense in the year ended December 31, 2016 related to headcount reductions.

Summaries of the 2016 Restructuring Initiative accrual activity for the years ended December 31, 2018 and 2017 are as follows (in thousands):



Year ended December 31, 2018	Balance at January 1, 2018		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2018
Facilities	$	95	$	—	$	—	$	(37	)	$	58



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	497	$	405	$	(26	)	$	(876	)	$	—
Facilities	—		126		—			(31		)	95
	$	497	$	531	$	(26	)	$	(907	)	$	95

Taqua Restructuring Initiative

In connection with the acquisition of Taqua, the Company's management approved a restructuring plan in the third quarter of 2016 to eliminate certain redundant positions within the combined companies. On October 24, 2016, the Audit Committee of the Board of Directors of the Company approved a broader Taqua restructuring plan related to headcount and redundant facilities (both restructuring plans, the "Taqua Restructuring Initiative"). The Company recorded $1.8 million of restructuring expense in the aggregate in connection with this initiative, comprised of $1.2 million for severance and related costs and $0.6 million related to the elimination of redundant facilities, including adjustments recorded for changes in cost estimates for the planned restructuring activities. The actions under the Taqua Restructuring Initiative have been implemented and accordingly, the Company does not expect to record additional expense in connection with this initiative. The amounts accrued for severance and related costs had been fully paid by the end of the third quarter of 2017. The Company expects that the amounts accrued for facilities will be paid by the end of 2019.

In connection with the Taqua Restructuring Initiative, the Company recorded $0.7 million of restructuring expense, including adjustments for changes in estimated costs, in the year ended December 31, 2017, comprised of $0.2 million for severance and related costs and $0.5 million related to redundant facilities. The Company recorded $1.2 million of restructuring expense for this initiative in the year ended December 31, 2016, comprised of $1.0 million for severance and related costs and $0.2 million related to redundant facilities.

Summaries of the Taqua Restructuring Initiative accrual activity for the years ended December 31, 2018 and 2017 are as follows (in thousands):



Year ended December 31, 2018	Balance at January 1, 2018		Initiatives charged to expense		Adjustments for changes in estimate		Cash payments			Balance at December 31, 2018
Facilities	$	365	$	—	$	—	$	(332	)	$	33



Year ended December 31, 2017	Balance at January 1, 2017		Initiatives charged to expense		Adjustments for changes in estimate			Cash payments			Balance at December 31, 2017
Severance	$	384	$	245	$	(49	)	$	(580	)	$	—
Facilities	218		508		—			(361		)	365
	$	602	$	753	$	(49	)	$	(941	)	$	365

Balance Sheet Classification

The current portions of accrued restructuring are included as a component of Accrued expenses in the consolidated balance sheets. The long-term portions of accrued restructuring are included as a component of Other long-term liabilities in the consolidated balance sheets. The long-term portions of accrued restructuring were $0.5 million at December 31, 2018 and $0.2 million at December 31, 2017. These amounts represent future lease payments on restructured facilities.