COVID-19 Repositioning Costs

12 Months Ended

Dec. 31, 2020

COVID-19 Repositioning Costs [Abstract]

In response to the impact of the COVID-19 pandemic, in the second quarter of 2020, we took actions to align our cost structure and reduce our workforce and facility requirements and reviewed businesses for disposal and assets for impairment. As a result of these actions, we recorded a pre-tax charge of $277.9 million, which is comprised of incremental severance of $150.0 million, real estate operating lease ROU asset and other asset impairment charges of $55.8 million, other exit costs of $47.0 million and dispositions and other charges of $25.1 million. Substantially all the liability related to real estate will be paid over the applicable lease term. The ROU asset and other asset impairment charges and the disposition and other charges are non-cash charges.

At December 31, 2020 the liability for the COVID-19 repositioning costs was (in millions):


Opening balance	$	197.0
Payments	(113.2)

December 31, 2020	$	83.8

We expect that the liability for the COVID-19 repositioning costs will be substantially paid by the end of 2021.

Net Gain on Dispositions and Repositioning Actions.

In the third quarter of 2018, we disposed of certain businesses, primarily in our CRM Execution & Support discipline, and recorded a net gain of $178.4 million. Additionally, we took certain repositioning actions in an effort to continue to improve our strategic position and achieve operating efficiencies and recorded charges of $149.4 million, which included $68.4 million for severance, $73.5 million for office lease consolidation and termination and other costs of $7.5 million. At December 31, 2020, substantially all the liability was paid.