Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

On April 24, 2024, the Company announced a plan to both relocate the operations of LiveWire Labs, the Company’s west coast product development facility, from Mountain View, California, to Milwaukee, Wisconsin, and streamline headcount at the Company. The Company believes this plan will enable synergies and optimize efficiencies in product development and simplify the Company’s overall path to future profitability.

In conjunction with this plan, the Company recorded $2,352 thousand of employee termination benefits, primarily severance, during the three and six months ended June 30, 2024. This amount was recorded within the Electric Motorcycles segment and presented within Selling, administrative and engineering on the consolidated statements of operations and comprehensive loss. Of this amount, $1,106 thousand related to one-time employee termination benefits recorded pursuant to ASC 420, Exit or Disposal Cost Obligations (“ASC 420”), and the remainder was related to existing contractual arrangements with employees recorded pursuant to ASC 712, Compensation – Nonretirement Postemployment Benefits. An additional $381 thousand will be recognized through September 30, 2024 as employees render service through the period up to the relocation of LiveWire Labs to Milwaukee, Wisconsin in accordance with ASC 420. Additionally, the Company anticipates that it will incur $684 thousand in other costs, including employee relocation and equipment move costs in conjunction with these actions. Of this amount, $192 thousand was recorded in the three and six months ended June 30, 2024 within the Electric Motorcycles segment and presented within Selling, administrative and engineering expense on the consolidated statements of operations and comprehensive loss.

The Company recognized a reduction in stock compensation expense of $2,294 thousand in the three and six months ended June 30, 2024 resulting from forfeitures of awards related to employees who terminated during the second quarter of 2024. The Company also recorded $386 thousand and $462 thousand of accelerated depreciation related to LiveWire Labs leasehold improvements resulting from the planned move from Mountain View, California to Milwaukee, Wisconsin in the three and six months ended June 30, 2024, respectively. These amounts were recorded within Selling, administrative and engineering expense on the consolidated statements of operations and comprehensive loss.

The following table displays a roll-forward of the restructuring liability recorded within the Company’s consolidated balance sheets and the related cash flow activity (in thousands):

	Employee Termination Benefits		Other		Total
Balance at December 31, 2023	$	—	$	—	$	—
Reserve Established	2,352		192		2,544
Utilization of reserve:
Payments	(457)		(97)		(554)
Balance at June 30, 2024	$	1,895	$	95	$	1,990