Restructuring Activities

3 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

In fiscal year 2024, we announced a restructuring plan (the “2024 Restructuring Plan”) focused on aligning our portfolio, investments, and resources in support of our strategic priorities and growth initiatives. This plan reflects actions driven by portfolio rationalization, including costs associated with licensor commitments, as well as reductions in real estate and headcount. The actions associated with this plan are expected to be substantially completed by December 31, 2024.

Under this plan, we estimate that we will incur approximately $125 million to $165 million in charges, consisting primarily of:

•$50 million to $65 million associated with office space reductions;

•$40 million to $55 million related to employee severance and employee-related costs; and

•$35 million to $45 million in costs associated with licensor commitments.

Since the inception of the 2024 Restructuring Plan through June 30, 2024, we have incurred net charges of $67 million.

Restructuring activities under this plan as of June 30, 2024 were as follows (in millions):


	Licensor Commitments (a)		Workforce (a)		Office Space Reductions (b)		Total

Charges to operations	$	30	$	29	$	2	$	61
Charges settled in cash	(17)		(5)		—		(22)
Non-cash items	(13)		—		(2)		(15)
Liability as of March 31, 2024	$	—	$	24	$	—	$	24
Charges (credits) to operations	—		(2)		8		6
Charges settled in cash	—		(19)		—		(19)
Non-cash items	—		—		(8)		(8)
Liability as of June 30, 2024	$	—	$	3	$	—	$	3
(a) Charges are recorded within Restructuring in the Condensed Consolidated Statement of Operations. (b) Of the $8 million charges recorded during the three months ended June 30, 2024, $4 million is recorded within Restructuring and $4 million is recorded within General and administrative expenses in the Condensed Consolidated Statement of Operations. Prior period charges were recorded within General and administrative expenses in the Consolidated Statement of Operations.

The restructuring liability of $3 million as of June 30, 2024, is included in accrued and other current liabilities on the Condensed Consolidated Balance Sheets.