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Restructuring Activities | 6 Months Ended
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Jun. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring Activities | 17. Restructuring Activities On May 5, 2022, the Company approved the Realignment Plan, which was designed to position the Company for long-term profitable growth by prioritizing unit economics, reducing operating expenses and maximizing liquidity. In connection with the Realignment Plan, the Company reduced headcount across the organization and closed its New York City, Detroit, and one of its Houston office locations as well as several Sell Us Your Car® center facilities. Additionally, the Company streamlined TDA's operations and closed its service center. The service center was repurposed to replace the reconditioning facility in Stafford, Texas, which was also closed. The Company also restructured its network of logistics hubs in order to align with reduced unit volume and its regional operating model. The restructuring activities associated with the Realignment Plan were substantially completed during 2022. O n January 18, 2023, the Company executed a reduction in force as part of the continued focus on reducing variable and fixed costs. The Company reduced Vroom’s headcount by approximately 275 employees based on the assessment of the Company's business needs, key initiatives, and long-term success and profitable growth. For the six months ended June 30, 2023, the Company incurred expenses of approximately $4.1 million, primarily consisting of severance. On April 26, 2023, as part of the Company’s ongoing reexamination of all facets of the business, the Company implemented an organizational restructuring that included a reduction in force. The Company reduced Vroom’s headcount by approximately 120 employees and incurred total expenses of approximately $2.3 million for the three and six months ended June 30, 2023, primarily consisting of severance costs, as a result of this reduction in force. The following table summarizes the components of the restructuring and related charges:
|  | Three months ended June 30, |  |  | Six months ended June 30, |  |  | Total Charges Incurred to Date |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  |  |
Charges by activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and termination benefits (1) |  | $ | 2,277 |  |  | $ | 4,946 |  |  | $ | 6,381 |  |  | $ | 4,946 |  |  | $ | 13,739 |
Impairment of operating lease right-of-use assets (2) |  |  | — |  |  |  | 3,407 |  |  |  | — |  |  |  | 3,407 |  |  |  | 6,491 |
Other costs (3) |  |  | — |  |  |  | 1,176 |  |  |  | — |  |  |  | 1,176 |  |  |  | 1,176 |
Total restructuring and related charges |  | $ | 2,277 |  |  | $ | 9,529 |  |  | $ | 6,381 |  |  | $ | 9,529 |  |  | $ | 21,406 |
(1) Severance and termination costs consist of severance costs provided to employees who have been terminated as well outplacement costs and COBRA benefits. (2) Impairment of operating lease right-of-use assets consist of costs associated with planned facility closures that will continue to be incurred under the contract for its remaining term without economic benefit to the Company. (3) Other costs incurred to date consist of legal expenses incurred in connection with the Realignment Plan and acceleration of depreciation of property and equipment related to the planned facility closures. Severance and termination benefits and other costs are included in "Selling, general, and administrative expenses" in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 and 2022. The following table is a reconciliation of the beginning and ending restructuring liability for the six months ended June 30, 2023 and 2022:
Balance as of December 31, 2022 |  | $ | 810 |
Accrual and accrual adjustments |  |  | 6,381 |
Cash payments |  |  | (6,237 | )
Balance as of June 30, 2023 |  | $ | 954 |
Balance as of December 31, 2021 |  | $ | — |
Accrual and accrual adjustments |  |  | 5,529 |
Cash payments |  |  | (2,435 | )
Balance as of June 30, 2022 |  | $ | 3,094 |
The restructuring liability for severance and termination benefits is reflected in "Accrued Expenses" in the condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022.

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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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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