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Telford Fire Safety Remediation
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Telford Fire Safety Remediation Efficiency and Cost-Reduction Initiatives
During the third quarter of 2022, we launched certain cost and operational efficiency initiatives that will further improve the company’s resiliency in an economic downturn while enabling continued operating platform investments that support future growth. The efficiency initiatives include management and workforce structure simplification, occupancy footprint rationalization and certain third-party spending reductions. As part of this, we incurred certain cash and non-cash charges. Non-cash charges are primarily associated with acceleration of depreciation and write-down of lease and related assets, partially offset by release of lease liability, as part of our lease termination activities. Cash-based charges are primarily related to employee separation, lease and certain contract exit costs, and professional fees. During the three months ended March 31, 2023, total charges (excluding depreciation) incurred were $138.2 million, related to employee separation, lease termination, and professional fees and other contract exit costs. Management continues to evaluate and modify these initiatives, which are likely to continue over the next few months.

The following table presents the detail of expense incurred by segment (dollars in thousands):
Three Months Ended March 31, 2023
Advisory
Services		Global
Workplace
Solutions		Real Estate
Investments		CorporateConsolidated
Employee separation benefits$17,175 $28,894 $13,158 $2,538 $61,765 
Lease exit costs39,273 731 4,204 1,143 45,351 
Professional fees and other6,090 19,763 4,093 1,185 31,131 
Subtotal62,538 49,388 21,455 4,866 138,247 
Depreciation expense5,440 79 3,482 — 9,001 
Total$67,978 $49,467 $24,937 $4,866 $147,248 
The following table shows ending liability balance associated with major cash-based charges (dollars in thousands):
Employee separation benefitsProfessional fees and other
Balance at December 31, 2022$37,014 $10,600 
Expense incurred61,765 31,131 
Payments made(44,672)(37,392)
Balance at March 31, 2023$54,107 $4,339 
Ending balance related to employee separation was included in “compensation and employee benefits payable” and the balance related to professional fees and other was included in “accounts payable and accrued expenses” in the accompanying consolidated balance sheets. Of the total charges incurred, net of depreciation expense, $17.9 million was included within the “Cost of revenue” line item and $120.3 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statement of operations for the three months ended March 31, 2023.
Environmental Loss Contingency Disclosure Telford Fire Safety Remediation
On March 16, 2023, Telford Homes entered into a legally binding agreement with the U.K. government, under which Telford Homes will (1) take responsibility for performing or funding self-remediation works relating to certain life-critical fire-safety issues on all Telford Homes-constructed buildings of 11 meters in height or greater in England constructed in the last 30 years (in-scope buildings) and (2) withdraw Telford Homes-developed buildings from the government-sponsored Building Safety Fund (BSF) and Aluminum Composite Material (ACM) Funds or reimburse the government funds for the cost of remediation of in-scope buildings.
The accompanying consolidated balance sheets include an estimated liability of approximately $188.1 million and $185.9 million as of March 31, 2023 and December 31, 2022, respectively, related to remediation efforts. The balance increased as of March 31, 2023 primarily due to the movement of foreign exchange rates, partially offset by $0.5 million of costs incurred for work performed during the quarter. We did not record any additional provision this quarter as the March 31, 2023 balance remains our best estimate of potential losses associated with overall remediation efforts. The potential liability and number of buildings affected may change as in-scope buildings are assessed, scopes of remediation are agreed with interested parties (freeholders and leaseholders) and the required remediation work is tendered for each building, all of which is anticipated to result in a lengthy process. We will continue to assess new information as it becomes available and adjust our estimated liability accordingly.