Restructuring and Reorganization Charges

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Charges

6. RESTRUCTURING AND REORGANIZATION CHARGES

During the second quarters of 2023 and 2022, we recorded restructuring and reorganization charges of $2.1 million and $19.0 million, respectively, and for the six months ended June 30, 2023 and 2022, we recorded restructuring and reorganization charges of $7.3 million and $32.1 million, respectively.

During the six months ended June 30, 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 60 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 $1.8 million.

•We modified two of our real estate leases, at previously closed locations in India and the United States, resulting in earlier termination dates and the recognition of a $3.8 million gain. We also recorded $0.5 million of additional operating lease right-of-use asset impairments on three of our leased real estate locations.

•During the second quarter of 2023 we exited a reseller agreement that was acquired with the acquisition of Forte Payment Systems, Inc. in 2018. As a result, we incurred expense of $3.6 million, of which $1.8 million has been paid and $1.8 million was accrued as of June 30, 2023.

The activity in the restructuring and reorganization reserves during the six months ended June 30, 2023 was as follows (in thousands):

	Termination Benefits			Other			Total
January 1, 2023, balance	$	2,491		$	-		$	2,491
Charged to expense during period		3,410			3,859			7,269
Cash payments		(4,943	)		(3,240	)		(8,183	)
Adjustment for asset impairment		-			(1,675	)		(1,675	)
Adjustment for gain on lease modifications		-			3,812			3,812
Adjustment for accelerated depreciation		-			(213	)		(213	)
Other		400			-			400
June 30, 2023, balance	$	1,358		$	2,543		$	3,901

As of June 30, 2023, all of the restructuring and reorganization reserves were included in current liabilities.