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Reorganization of Businesses | 12 Months Ended
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Dec. 31, 2023
Restructuring and Related Activities [Abstract] |
Reorganization of Businesses | Reorganization of Businesses The Company maintains a formal Involuntary Severance Plan (the “Severance Plan”), which permits the Company to offer eligible employees severance benefits based on years of service and employment grade level in the event that employment is involuntarily terminated as a result of a reduction-in-force or restructuring. The Company recognizes termination benefits based on formulas per the Severance Plan at the point in time that future settlement is probable and can be reasonably estimated based on estimates prepared at the time a restructuring plan is approved by management. Exit costs consist of contractual lease termination costs, costs to exit committed contracts and other contractual terminations. At each reporting date, the Company evaluates its accruals for employee separation and exit costs to ensure the accruals are still appropriate. In certain circumstances, accruals are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance, or were redeployed due to circumstances not foreseen when the original plans were approved. In these cases, the Company reverses accruals through the Consolidated Statements of Operations where the original charges were recorded when it is determined they are no longer needed. During 2023, 2022, and 2021 the Company continued to implement various productivity improvement plans aimed at achieving long-term, sustainable profitability by driving efficiencies and reducing operating costs. These initiatives impacted both of the Company’s segments and affected employees located in all geographic regions. 2023 Charges During 2023, the Company recorded net reorganization of business charges of $53 million, including $7 million of charges in Costs of sales and $46 million of charges in Other charges in the Company’s Consolidated Statements of Operations. Included in the $53 million were charges of $41 million related to employee separation costs and a $24 million impairment loss related to the exit of video manufacturing operations, partially offset by $7 million of reversals for employee separation accruals no longer needed and $5 million of reversals for exit cost accruals no longer needed. The following table displays the net charges incurred by segment:
Year ended December 31 | 2023
Products and Systems Integration | $ | 45 |
Software and Services | 8 |
| $ | 53 |
Reorganization of Businesses Accruals
| Accruals at January 1 |  | Additional Charges |  | Adjustments |  | Amount Used |  | Accruals at December 31
Reorganization costs | $ | 26 |  |  | $ | 41 |  |  | $ | (7) |  |  | $ | (37) |  |  | $ | 23 |
Exit costs | $ | 10 |  |  | $ | — |  |  | $ | (5) |  |  | $ | — |  |  | $ | 5 |
| $ | 36 |  |  | $ | 41 |  |  | $ | (12) |  |  | $ | (37) |  |  | $ | 28 |
Exit Costs At January 1, 2023, the Company had an accrual of $10 million for exit costs related to the Company's exit of the ESN contract with the Home Office. During the year, the Company recorded a $5 million reversal for accruals no longer needed. The remaining $5 million of exit costs are recorded in Accrued liabilities in the Company's Consolidated Balance Sheet at December 31, 2023, and are expected to be paid within one year. Employee Separation Costs At January 1, 2023, the Company had an accrual of $26 million for employee separation costs. The 2023 additional charges of $41 million include severance costs for approximately 700 employees, of which 420 were direct employees and 280 were indirect employees. The adjustments of $7 million reflect reversals of accruals no longer needed. The $37 million used in 2023 reflects cash payments to severed employees. The remaining accrual of $23 million, which is included in Accrued liabilities in the Company’s Consolidated Balance Sheet at December 31, 2023, is expected to be paid, primarily within one year to: (i) severed employees who have already begun to receive payments and (ii) approximately 75 employees to be separated in 2024. 2022 Charges During 2022, the Company recorded net reorganization of business charges of $36 million, including $18 million of charges in Costs of sales and $18 million of charges under Other charges in the Company’s Consolidated Statements of Operations. Included in the aggregate $36 million were charges of $36 million for employee separation costs and $10 million for exit costs, partially offset by $10 million of reversals of accruals no longer needed. The following table displays the net charges incurred by segment:
Year ended December 31 | 2022
Products and Systems Integration | $ | 21 |
Software and Services | 15 |
| $ | 36 |
Reorganization of Businesses Accruals
| Accruals at January 1 |  | Additional Charges |  | Adjustments |  | Amount Used |  | Accruals at December 31
Reorganization costs | $ | 34 |  |  | $ | 36 |  |  | $ | (10) |  |  | $ | (34) |  |  | $ | 26 |
Exit costs | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
| $ | 34 |  |  | $ | 46 |  |  | $ | (10) |  |  | $ | (34) |  |  | $ | 36 |
Exit Costs At January 1, 2022, the Company did not have an accrual for exit costs. There were $10 million of exit cost charges in 2022 related to the Company's exit of the ESN contract with the Home Office. The accrual of $10 million was included in Accrued liabilities in the Company's Consolidated Balance Sheet at December 31, 2022. Employee Separation Costs At January 1, 2022, the Company had an accrual of $34 million for employee separation costs. The 2022 additional charges of $36 million include severance costs for approximately 460 employees, of which 310 were direct employees and 150 were indirect employees. The adjustments of $10 million reflect reversals of accruals no longer needed. The $34 million used in 2022 reflects cash payments to severed employees. The remaining accrual of $26 million was included in Accrued liabilities in the Company’s Consolidated Balance Sheet at December 31, 2022. 2021 Charges During 2021, the Company recorded net reorganization of business charges of $32 million, including $8 million of charges in Costs of sales and $24 million of charges in Other charges in the Company’s Consolidated Statements of Operations. Included in the aggregate $32 million were charges of $42 million for employee separation costs, partially offset by $10 million of reversals for accruals no longer needed. The following table displays the net charges incurred by segment:
Year ended December 31 | 2021
Products and Systems integration | $ | 25 |
Software and Services | 7 |
| $ | 32 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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