Restructuring charges

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring charges for each period were as follows:


	Year ended December 31,
(in thousands)		2020		2019		2018
Cost of revenue		$	1,201	$	54	$	1,379
Research and development		8,062		585		12,794
Sales and marketing		10,684		314		5,291
General and administrative		5,449		501		3,279
Total restructuring charges		$	25,396	$	1,454	$	22,743

Second quarter 2020 restructuring plan

On April 14, 2020, the Company approved a restructuring plan to reduce future operating expenses, optimize its business model and address the impact of the COVID-19 pandemic. The restructuring provided for a reduction of the Company’s global workforce by approximately 20% and the consolidation of certain leased office facilities. Under the second quarter 2020 restructuring plan, the Company recorded restructuring charges of $25.5 million, including a $12.5 million right-of-use asset impairment primarily related to its headquarters campus, $7.3 million related to severance, and $5.8 million related to accelerated depreciation and other charges.

The Company ceased using a portion of its headquarters campus in the third quarter of 2020 as part of the second quarter 2020 restructuring plan. The unused portion of the Company’s headquarters campus has its own identifiable expenses and is not dependent on other parts of the Company, and thus was considered its own asset group. As a result, the Company impaired a part of the carrying value of the related right-of-use asset to its

estimated fair value using the discounted future cash flows method. The discounted future cash flows were determined based on future sublease rental rates, future sublease market conditions and a discount rate based on the weighted-average cost of capital. Based on the results of the Company’s assessment, the Company recognized a $12.3 million impairment, which was reflected as a restructuring expense, primarily in the operating expense financial statement line items in the Consolidated Statements of Operations.

The following table provides a summary of the Company’s restructuring activities and the movement in the related liabilities recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheets under the second quarter 2020 restructuring plan.


(in thousands)	Severance		Other		ROU Asset Impairment		Total












Restructuring liability as of December 31, 2019	$	—	$	—	$	—	$	—
Restructuring charges	7,287		5,800		12,460		25,547
Cash paid	(7,238)		(1,592)		—		(8,830)
Non-cash reductions	—		(4,169)		(12,460)		(16,629)
Restructuring liability as of December 31, 2020	$	49	$	39	$	—	$	88

First quarter 2017 restructuring plan

On March 15, 2017, the Company approved a restructuring plan to reduce future operating expenses and further align resources around its long-term business strategy. The restructuring provided for a reduction of the Company’s global workforce by approximately 17% and the consolidation of certain leased office facilities. Under the first quarter 2017 restructuring plan, the Company recorded restructuring charges of $23.1 million, including $10.3 million related to severance, and $12.8 million related to accelerated depreciation and other charges. The actions associated with the first quarter 2017 restructuring plan were substantially completed by the fourth quarter of 2017.

The following table provides a summary of the Company’s restructuring activities and the movement in the related liabilities recorded in accrued expenses and other current liabilities, and other long-term liabilities on the Consolidated Balance Sheets under the first quarter 2017 restructuring plan.


(in thousands)	Severance		Other		Total




Restructuring liability as of December 31, 2017	—		3,550		3,550
Restructuring charges (1)	—		4,783		4,783
Cash paid	—		(3,293)		(3,293)
Non-cash charges	—		627		627
Restructuring liability as of December 31, 2018	—		5,667		5,667
Restructuring charges (1)	—		1,395		1,395
Cash paid	—		(2,257)		(2,257)
Non-cash reductions	—		(335)		(335)
Restructuring liability as of December 31, 2019	$	—	$	4,470	$	4,470
Restructuring charges (1)	—		(57)		(57)
Cash paid	—		(3,559)		(3,559)

Restructuring liability as of December 31, 2020	$	—	$	854	$	854

(1) Includes lease termination charges, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets, and totaled $0.9 million as of December 31, 2020.