Restructuring and Related Activities

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring

In July 2023, the Company initiated a restructuring plan ("Plan") as part of its efforts to reduce costs to better align the Company's operational needs with lower tower activity. The Plan includes reducing the Company's total employee headcount by approximately 15%, discontinuing installation services as a Towers product offering while continuing to offer site development services on Company towers, and consolidating office space.

In 2023, the Company recorded approximately $85 million in charges in connection with the Plan, $62 million of which represent cash payments that have been or will be made in connection with employee severance and other one-time termination benefits. An additional $1 million of non-cash charges relate to share-based compensation. In connection with the office space consolidation, the Company recorded a $16 million charge related to remaining obligations under facility leases and $6 million of non-cash charges representing accelerated depreciation.

The actions announced in July 2023 associated with the Plan and related charges are expected to be substantially completed and recorded by June 30, 2024, while the payments are expected to be completed for the employee headcount reduction and office space consolidation in 2024 and 2032, respectively. We expect to incur an additional approximately $14 million of related charges during the first half of 2024, primarily related to the office space consolidation.

The following table summarizes the activities related to the restructuring for year ended December 31, 2023:

	Employee Headcount Reduction		Office Space Consolidation		Total
Charges	$	63	$	22	$	85
Payments	(46)		(4)		(50)
Non-cash items	(1)		(6)		(7)
Liability as of December 31, 2023	$	16	$	12	$	28

As of December 31, 2023, the liability for restructuring charges is included in "Other accrued liabilities" on the consolidated balance sheet, and the corresponding expense is included in "Restructuring charges" on the consolidated statements of operations and comprehensive income.

The Company does not allocate restructuring charges between its operating segments. If such charges were allocated to operating segments, for the year ended 2023, $44 million and $18 million of the aforementioned charge would have been allocated to the Company's Towers and Fiber segment, respectively, with the remaining $23 million allocated to Other.