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Efficiency and Cost-Reduction Initiatives | 6 Months Ended
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Jun. 30, 2023
Restructuring and Related Activities [Abstract] |
Efficiency and Cost-Reduction Initiatives | Efficiency and Cost-Reduction InitiativesDuring the third quarter of 2022, we launched certain cost and operational efficiency initiatives to 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 benefits, lease and certain contract exit costs, and professional fees. These initiatives were largely completed as of March 31, 2023. The following table presents the detail of expense incurred by segment (dollars in thousands):
| Six Months Ended June 30, 2023
| Advisory Services |  | Global Workplace Solutions |  | Real Estate Investments |  | Corporate |  | Consolidated
Employee separation benefits | $ | 19,158 |  |  | $ | 29,858 |  |  | $ | 13,158 |  |  | $ | 2,538 |  |  | $ | 64,712 |
Lease exit costs | 39,273 |  |  | 731 |  |  | 4,204 |  |  | 1,143 |  |  | 45,351 |
Professional fees and other | 5,963 |  |  | 19,209 |  |  | 4,097 |  |  | 1,225 |  |  | 30,494 |
Subtotal | 64,394 |  |  | 49,798 |  |  | 21,459 |  |  | 4,906 |  |  | 140,557 |
Depreciation expense | 5,453 |  |  | 44 |  |  | 3,482 |  |  | — |  |  | 8,979 |
Total | $ | 69,847 |  |  | $ | 49,842 |  |  | $ | 24,941 |  |  | $ | 4,906 |  |  | $ | 149,536 |
Of the total expenses above, $2.3 million were incurred during the three months ended June 30, 2023 and the remaining $147.2 million were incurred during the three months ended March 31, 2023. The following table shows ending liability balance associated with major cash-based charges (dollars in thousands):
| Employee separation benefits |  | Professional fees and other
Balance at December 31, 2022 | $ | 37,014 |  |  | $ | 10,600 |
Expense incurred | 64,712 |  |  | 30,494 |
Payments made | (77,215) |  |  | (41,094) |
Balance at June 30, 2023 | $ | 24,511 |  |  | $ | — |
Ending balance related to employee separation benefits was included in “compensation and employee benefits payable” in the accompanying consolidated balance sheets. Of the total charges incurred, net of depreciation expense, $17.3 million was included within the “Cost of revenue” line item and $123.2 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statement of operations for the six months ended June 30, 2023.

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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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