Restructuring Charges

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Charges

Note 6. Restructuring Charges

The Company’s restructuring events are primarily intended to realign its workforce, optimize cost structure, and consolidate facilities as a result of organizational and leadership changes to effectively support the Company’s long-term strategic objectives. Restructuring charges include termination benefits related to workforce reductions, facility exit-related costs, contract termination costs, impairment of certain assets and other related costs associated with exit or disposal activities. Workforce reduction-related benefits are provided to employees primarily under the Company’s ongoing benefit arrangements, which are accrued when the existing situation or set of circumstances indicates that an obligation has been incurred, it is probable the benefits will be paid, and the amount can be reasonably estimated in accordance with the provisions of the applicable accounting guidance.

2023 Transformation Plan

During the third quarter of 2023, as a result of a thorough review of the Company’s business and strategic objectives, the Company initiated and approved a restructuring plan (“2023 Transformation Plan”) intended to reallocate resources and investments in long-term growth opportunities, realign its workforce, and optimize its real estate and asset portfolios to efficiently support the Company’s strategic priorities and goals.

In connection with the 2023 Transformation Plan, the Company incurred aggregate charges of $49.1 million during the three months ended September 30, 2023, consisting of employee severance, facility exit-related, fixed asset impairment, and other restructuring-related charges. The Company currently estimates incurring aggregate future charges of approximately $10.0 million, which will primarily consist of facility exit-related and other restructuring-related charges.

The actions taken under the 2023 Transformation Plan are expected to be substantially completed by the end of the first quarter of 2024, though certain facility exits and potential position eliminations may take longer to implement.

Prior Plans

During the third quarter of 2023, the Company also approved an expansion of the restructuring plan initiated during the first half of 2023, which resulted in $14.2 million charges related to asset impairments. As of September 30, 2023, approved actions under prior restructuring plans have been substantially completed.

The following table provides a summary of changes in the restructuring liabilities (in millions) under the 2023 Transformation Plan and prior plans for the nine months ended September 30, 2023:

	2023 Transformation Plan						Prior Plans
	Employee severance		Facility exit-related and Asset impairments		Other		Employee severance		Contract terminations		Facility exit-related and Asset impairments		Total
Liability as of December 31, 2022	$	—	$	—	$	—	$	3.0	$	1.9	$	1.2	$	6.1
Charges	38.9		5.0		5.2		6.5		8.0		14.9		78.5
Cash payments	(0.1)		—		(0.1)		(6.0)		(9.4)		(0.2)		(15.8)
Adjustments	(0.1)		(4.5)		—		—		—		(15.6)		(20.2)
Liability as of September 30, 2023	$	38.7	$	0.5	$	5.1	$	3.5	$	0.5	$	0.3	$	48.6