Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Related Charges (Tables)

v3.23.3
Restructuring and Related Charges (Tables)
 9 Months Ended
Sep. 30, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Components of and Changes in Restructuring and Related Charges
The components of the restructuring charges (including professional service fees) are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2023
(in thousands)
Severance and benefits (1)
$ 3,325  $ 11,152 
Accelerated expense on abandoned right-of-use assets (2)
350  2,560 
Professional fees (3)
1,373  8,628 
Other (4)
927  1,624 
Total restructuring charges $ 5,975  $ 23,964 
(1)Charges of $1.0 million and $4.2 million recorded in cost of services (exclusive of depreciation and amortization) for the three and nine months ended September 30, 2023. Charges of $2.4 million and $7.0 million recorded in selling, general and administrative expenses for the three and nine months ended September 30, 2023.
(2)Charges for accelerated expense and additional costs associated with abandoned right-of-use assets recorded in selling, general and administrative expenses.
(3)Professional service fees consist of consulting costs related to the execution of the Company’s global restructuring plan to improve the Company’s cost structure, operating efficiency, and redesign and right size the organization. These charges are recorded in selling, general and administrative expenses.
(4)Other charges recorded in selling, general and administrative expenses.
The following table provides the components of and changes in the Company’s restructuring and related charges, included in accrued salaries and payroll and accrued expenses and other current liabilities on the condensed consolidated balance sheets:
September 30, 2023
(in thousands)
Balance at December 31, 2022
 $ — 
Charges incurred (1)
21,404 
Payments (18,176)
Balance at September 30, 2023
 $ 3,228 
(1)Includes $11.2 million in charges for employee severance and benefits related to the workforce reduction, $1.9 million of which remains unpaid as of September 30, 2023.