Restructuring and Reorganization Charges

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Charges

6. RESTRUCTURING AND REORGANIZATION CHARGES

During the third quarters of 2023 and 2022, we recorded restructuring and reorganization charges of $1.2 million and $14.2 million, respectively, and for the nine months ended September 30, 2023 and 2022, we recorded restructuring and reorganization charges of $8.4 million and $46.3 million, respectively.

During the nine months ended September 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 82 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 $2.2 million.

•We modified three 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 $4.3 million gain. We also recorded $0.5 million of additional operating lease right-of-use asset impairments.

•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 September 30, 2023.

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

	Termination Benefits			Other			Total
January 1, 2023, balance	$	2,491		$	-		$	2,491
Charged to expense during period		3,801			4,620			8,421
Cash payments		(6,570	)		(4,407	)		(10,977	)
Adjustment for asset impairment		-			(1,675	)		(1,675	)
Adjustment for gain on lease modifications		-			4,349			4,349
Adjustment for accelerated depreciation		-			(394	)		(394	)
Other		688			-			688
September 30, 2023, balance	$	410		$	2,493		$	2,903

As of September 30, 2023, $2.9 million of the restructuring and reorganization reserves were included in current liabilities.