XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Restructuring and Related Activities
 9 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
During the year ended December 31, 2020, the Company implemented a restructuring plan (the "2020 Plan") to optimize future growth and profitability. The primary components of the 2020 Plan included a workforce reduction, a reduction of the Company's real estate expenses and professional fees, and the elimination of certain deferred compensation programs. The Company continued to incur charges related to the 2020 Plan during the year ended December 31, 2021, which primarily related to finalizing a reduction of the Company's real estate footprint.

The Company did not incur any charges under the 2020 Plan during the three and nine months ended September 30, 2022 and does not anticipate incurring any future charges under the 2020 Plan.

Restructuring charges (reversals) for the three months ended September 30, 2021 by type of charge (reversal) and operating segment are as follows:
Executive Search
AmericasEuropeAsia PacificHeidrick ConsultingGlobal Operations SupportTotal
Employee related$4 $9 $— $— $94 $107 
Office related(2,891)— — (279)(199)(3,369)
Total$(2,887)$9 $— $(279)$(105)$(3,262)

Restructuring charges (reversals) for the nine months ended September 30, 2021 by type of charge (reversal) and operating segment are as follows:
Executive Search
AmericasEuropeAsia PacificHeidrick ConsultingGlobal Operations SupportTotal
Employee related$20 $(97)$(124)$(44)$62 $(183)
Office related3,859 — — 399 (296)3,962 
Other3 — — — 10 13 
Total$3,882 $(97)$(124)$355 $(224)$3,792 
Restructuring charges incurred through September 30, 2022 under the 2020 Plan, which are solely comprised of prior period charges, by type of charge and operating segment are as follows:

Executive Search
AmericasEuropeAsia PacificHeidrick ConsultingGlobal Operations SupportTotal
Employee related$16,226 $8,256 $4,110 $2,589 $1,416 $32,597 
Office related18,101 226 374 2,352 1,819 22,872 
Other34 24 6 71 560 695 
Total$34,361 $8,506 $4,490 $5,012 $3,795 $56,164 

As part of the Company's reduction in real estate expenses under the 2020 Plan, a lease component related to one of the Company's offices was abandoned. In September 2021, the Company entered into a termination and surrender agreement for this lease component. Under the terms of the agreement, the Company made a one-time payment of $11.7 million to release the Company from all remaining obligations under the lease. At the time of payment, the Company had accrued approximately $17.4 million of lease liabilities related to future payments under the remaining lease term. Upon making the one-time payment, the lease liabilities were relieved, resulting in a gain on termination of approximately $5.7 million, which is recorded in Restructuring charges in the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2021.

Changes in the restructuring accrual for the nine months ended September 30, 2022 were as follows:
Employee Related
Accrual balance at December 31, 20218,394 
Cash payments(4,843)
Non-cash write-offs(34)
Exchange rate fluctuations(157)
Accrual balance at September 30, 2022$3,360 

Restructuring accruals are recorded within current Accrued salaries and benefits as of September 30, 2022.