Restructuring and Reorganization Charges

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Charges

6. RESTRUCTURING AND REORGANIZATION CHARGES

During the first quarters of 2023 and 2022, we recorded restructuring and reorganization charges of $5.2 million and $13.1 million, respectively.

During the first quarter of 2023 we implemented the following restructuring and reorganizational activities:

•In March 2023 we decided to dissolve the Keydok business, which we had acquired in September of 2021. As a result, we recorded net impairment charges of $1.2 million, to include the write-off of the acquired goodwill. We also subsequently terminated approximately 30 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $1.6 million.

•We reduced our workforce by approximately 30 employees, mainly in the U.S., as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $1.0 million.

•We recorded $0.4 million of additional operating lease right-of-use asset impairments on three of our leased real estate locations.

The activity in the restructuring and reorganization reserves during the first quarter of 2023 was as follows (in thousands):

	Termination Benefits			Other			Total
January 1, 2023, balance	$	2,491		$	-		$	2,491
Charged to expense during period		2,557			2,637			5,194
Cash payments		(2,751	)		(1,006	)		(3,757	)
Adjustment for asset impairment		-			(1,595	)		(1,595	)
Adjustment for accelerated depreciation		-			(36	)		(36	)
Other		351			-			351
March 31, 2023, balance	$	2,648		$	-		$	2,648

As of March 31, 2023, all of the restructuring and reorganization reserves were included in current liabilities.