Restructuring and Other Related Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

On November 28, 2022, the Company commenced a restructuring plan (the “Plan”) designed to achieve significant cost reductions in light of “cord cutting” and the related impacts being felt across the media industry as well as the broader economic outlook. The Plan encompasses initiatives that include, among other things, strategic programming assessments and organizational restructuring costs. The Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. The programming assessments pertain to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the Company’s linear or streaming platforms. As a result of the Plan, the Company recorded restructuring and other related charges of $449.0 million for the year ended December 31, 2022, consisting of content impairments of $403.8 million and severance and other personnel costs of $45.2 million. The Company expects to incur additional restructuring and other related charges in 2023.

Restructuring and other related charges of $10.4 million for the year ended December 31, 2021 consisted of (i) $6.1 million at AMCNI related to severance costs and the termination of distribution in certain international territories and (ii) $4.3 million of severance costs associated with the restructuring plan announced in November 2020.

The Company recorded restructuring and other related charges of $35.1 million for the year ended December 31, 2020. On November 18, 2020, the Company commenced a restructuring plan (the “2020 Plan”) designed to streamline the Company’s operations through a reduction of its domestic workforce. The 2020 Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. Restructuring and other related charges associated with the 2020 Plan, recorded in 2020, were primarily for severance and other personnel costs of $21.2 million, of which $15.8 million was attributable to the Domestic Operations segment, $0.2 million was attributable to the International and Other segment, and $5.2 million was attributable to Corporate / Inter-segment Eliminations. Additional restructuring and other related charges for the year ended December 31, 2020 were $13.9 million, which related to costs associated with the termination of distribution in certain territories, as well as severance and other personnel related costs associated with previously disclosed restructuring activities.

The following table summarizes the restructuring and other related charges recognized by operating segment:


	Years Ended December 31,
(In thousands)	2022		2021		2020
Domestic Operations	$	423,205	$	2,516	$	22,946
International and Other	2,854		6,083		6,410
Corporate / Inter-segment Eliminations	22,907		1,779		5,712
Total restructuring and other related charges	$	448,966	$	10,378	$	35,068

The following table summarizes the restructuring and other related charges recognized for the three years:


	Years Ended December 31,
(In thousands)	2022		2021		2020
Restructuring charges	$	45,212	$	10,378	$	35,068
Content impairments	403,754		—		—
Total restructuring and other related charges	$	448,966	$	10,378	$	35,068

The following table summarizes the accrued restructuring and other related costs:


(In thousands)	Severance and Employee-Related Costs		Content Impairments and Other Exit Costs		Total
Balance at December 31, 2020	$	25,571	$	31	$	25,602
Charges	5,921		4,457		10,378

Cash payments	(31,245)		(256)		(31,501)
Non-cash adjustments	—		(4,201)		(4,201)
Currency translation	64		(2)		62
Balance at December 31, 2021	311		29		340
Charges	45,212		403,754		448,966

Cash payments	(311)		(13)		(324)
Non-cash adjustments	(7,698)		(329,046)		(336,744)
Currency translation	(364)		—		(364)
Balance at December 31, 2022	$	37,150	$	74,724	$	111,874

Accrued restructuring and other related costs of $108.0 million and $3.9 million are included in Accrued liabilities and Other liabilities, respectively, in the consolidated balance sheet at December 31, 2022. Accrued restructuring and other related costs of $0.3 million are included in Accrued liabilities in the consolidated balance sheet at December 31, 2021.