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RESTRUCTURING | 9 Months Ended
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Sep. 30, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING During the nine months ended September 30, 2024, we implemented an expense reduction initiative that included 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 September 30, 2024 |  | Cumulative amount incurred to date
Employee separation costs | $ | — |  |  | $ | 10,051 |
Other costs | 6,701 |  |  | 14,678 |
Total restructuring charges(1) | $ | 6,701 |  |  | $ | 24,729 |
(1) For the three months ended September 30, 2024, $6.9 million was recorded in sales, general and administrative expense. Cumulative charges incurred to date include $14.4 million in sales, general and administrative expense; $5.9 million in research and development expense; and $4.4 million in cost of revenue. Cumulative charges incurred to date include employee separation costs comprised of 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. Other costs in the three months ended September 30, 2024 and cumulative charges incurred to date are primarily related to accelerated amortization and depreciation of $5.1 million and $8.1 million respectively, for the right-of-use asset, leasehold improvements, and furniture and fixtures relating to the abandonment of the San Diego office. We also incurred cumulative charges to date for excess inventory of $3.6 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 planned 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. We fully exited our San Diego office in September 2024. A summary of the liabilities related to the restructuring is as follows:
(in thousands) |  | Employee Separation Costs |  | Other Costs |  | Total
Expense recorded in YTD 2024 |  | $ | 10,051 |  |  | $ | 2,321 |  |  | $ | 12,372 |
Cash paid during YTD 2024 |  | (10,008) |  |  | (2,049) |  |  | (12,057) |
Amount recorded in current liabilities as of September 30, 2024 |  | $ | 43 |  |  | $ | 272 |  |  | $ | 315 |
Estimated total restructuring costs to still be incurred |  | $ | — |  |  | $ | 2,074 |  |  | $ | 2,074 |
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 September 30, 2024 is $3.4 million, and is included in operating lease liabilities, current on the Condensed Consolidated Balance Sheets. The other restructuring costs are expected to be incurred and paid by the end of 2025.

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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