|9 Months Ended|
Sep. 30, 2018
|Restructuring and Related Activities [Abstract]|
During April 2017, the Company implemented a strategic realignment that included reductions in headcount and the closing or downsizing of market branches and certain corporate offices. The Company has incurred cumulative restructuring costs of $9.0 million related to this event.
In May 2018, the Company implemented a strategic integration plan resulting from the Birch Merger and MegaPath Merger. This restructuring plan includes a workforce reduction to rebalance the Company’s resources, closing or consolidation of certain offices and reductions in other operating expenses. The Company has incurred cumulative restructuring costs of $3.7 million related to this event.
For the three months ended September 30, 2018 and 2017, the Company incurred restructuring costs in selling and general administrative expense of $1.5 million and $2.3 million, respectively. For the nine months ended September 30, 2018 and 2017, the Company incurred restructuring costs in selling and general administrative expense of $5.2 million and $5.5 million, respectively. The restructuring costs primarily relate to employee severances and benefits, facility exit costs, and revisions to certain sublease assumptions underlying existing accruals. The total additional expense expected to be incurred from the 2018 restructuring event for additional employee severances, benefits and bonuses and facility exit costs is approximately $5.0 million over the next twelve months.
The following table summarizes changes to the accrued liability associated with the restructuring for the nine months ended September 30, 2018 and 2017 (in thousands):
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.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef