Restructuring Expenses

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

During 2020, the Company announced a company-wide organizational realignment initiative in order to more effectively align its organizational infrastructure and operations with the industry vision of the Autonomous Pharmacy. The Company also initiated a restructuring plan to help mitigate the adverse impact of the COVID-19 pandemic on its business and financial results. During the year ended December 31, 2020, the Company incurred $10.0 million of employee severance costs and related expenses.

During the first quarter of 2021, the Company continued its organizational realignment initiative, incurring $2.0 million of employee severance costs and related expenses.

During the first quarter of 2022, the Company initiated certain domestic and international restructuring initiatives in order to enhance and streamline certain engineering functions for its domestic operations and to realign its international sales organization to better serve its customers in various international markets. During the third quarter of 2022, the Company initiated restructuring initiatives associated with the integration and functionalization of certain acquisitions, primarily the 340B Link business acquisition, to further accelerate the expansion of the Company’s pharmacy inventory management capabilities. On November 23, 2022, the Company committed to a plan to reduce the Company’s headcount as part of the Company’s expense containment efforts being implemented due to ongoing macroeconomic headwinds, primarily consisting of employee severance and benefits costs.

During the year ended December 31, 2022, the restructuring plans incurred $22.8 million of employee severance costs and related expenses. As of December 31, 2022, the unpaid balance related to these restructuring plans was $18.2 million.

Refer to Note 13, Lessee Leases for information regarding the Company’s restructuring activities for optimization of certain leased facilities.

The following table summarizes the total restructuring expenses recognized in the Company’s Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020:

	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Cost of product and service revenues	$	8,018	$	389	$	2,564
Research and development	3,615		105		3,716
Selling, general, and administrative	11,170		1,526		3,681
Total restructuring expense	$	22,803	$	2,020	$	9,961