ROKU INC

16. RESTRUCTURING CHARGES

The Company began efforts to reduce its operating expense growth rate due to economic conditions in the fourth quarter of fiscal 2022. During fiscal 2023, the Company implemented additional measures, including consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.

During the three months ended March 31, 2025, the Company recorded restructuring charges associated with decisions to sub-lease and cease the use of certain office facilities. During the three months ended March 31, 2024, the Company recorded restructuring charges associated with employee termination expenses consisting primarily of severance payments, employee benefits contributions, payroll taxes and related costs, and impairment charges related to decisions to sub-lease and cease the use of certain office facilities and related property and equipment.

Restructuring charges are recorded as follows (in thousands):

The asset impairment charges for the three months ended March 31, 2025 were primarily comprised of $2.9 million of operating lease right-of-use assets impairment. The asset impairment charges for the three months ended March 31, 2024 include $0.6 million of operating lease right-of-use assets impairment and $0.5 million of property and equipment impairment, partially offset by $0.3 million of adjustments to other long-term liabilities and assets.

A reconciliation of the beginning and ending balance of employee termination restructuring charges and facilities exit costs, which are included in Accrued liabilities in the condensed consolidated balance sheets, is as follows (in thousands):