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RESTRUCTURING
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
During the three months ended June 30, 2024, we initiated expense reduction initiatives that include workforce reductions, the closing of our San Diego office, and other actions to reduce annualized run-rate operating expenses.
A summary of the pre-tax restructuring charges are as follows:
(in thousands)Three Months Ended June 30, 2024
Cumulative charges recorded since inception
Employee separation costs
$10,051 $10,051 
Other costs7,977 7,977 
Total restructuring charges(1)
$18,028 $18,028 
(1) $7.5 million was recorded in sales, general and administrative expense; $5.9 million in research and development expense; and $4.6 million in cost of revenue.
Charges included in employee separation costs include approximately $5.5 million related to salaries, wages and other employee benefits paid to terminated employees pursuant to the Worker Adjustment and Retraining Notification (WARN) Act and approximately $4.5 million of severance costs.
Charges included in other costs are primarily related to accelerated amortization and depreciation of $3.0 million for the right-of-use asset, leasehold improvements, and furniture and fixtures relating to the planned abandonment of the San Diego office, as well as charges for excess inventory of $3.8 million primarily relating to a decrease in internal demand resulting from the expense reduction initiatives which were recognized in cost of product revenues. The accelerated amortization and depreciation, which was recognized in sales, general and administrative expense, was determined as a result of the Company's change in estimate pertaining to its remaining useful life of the San Diego office utilizing the estimated date on which it plans to abandon the San Diego office. The lease liability pertaining to the San Diego office was also remeasured during the three months ended June 30, 2024 resulting in a reduction in the operating lease liability balance of $4.4 million, which was offset against the right-of-use asset on the Condensed Consolidated Balance Sheets. As of June 30, 2024, we had approximately $5.1 million assets related to our San Diego office, consisting primarily of unamortized right-of-use assets and leasehold improvements, the balance of which will be recognized over the remaining estimated useful life.
A summary of the liabilities related to the restructuring is as follows:
(in thousands)
Employee Separation Costs
Other Costs
Total
Expense recorded in Q2 2024
$10,051 $1,143 $11,194 
Cash paid during Q2 2024
(6,088)(709)(6,797)
Amount recorded in current liabilities as of June 30, 2024
$3,963 $434 $4,397 
Estimated total restructuring costs to still be incurred$— $8,332 $8,332 
The table above excludes noncash activities and amounts incurred relating to the San Diego office lease liability. The ending balance of the San Diego office lease liability as of June 30, 2024 is $6.3 million, and is included in operating lease liabilities, current on the Condensed Consolidated Balance Sheets.
Most employee separation costs are expected to be incurred and paid by the end of 2024. We also plan to exit our San Diego office by September 2024.