Restructuring Activities

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

During 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. Cash-based charges are primarily related to employee separation benefits, lease and certain contract exit costs, and professional fees. 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. These initiatives were largely executed as of March 31, 2023.

The following tables present the detail of expenses incurred by segment (dollars in millions):


	Year Ended December 31, 2023
	Advisory Services		Global Workplace Solutions		Real Estate Investments		Corporate		Consolidated
Employee separation benefits	$	26	$	32	$	13	$	11	$	82
Lease exit costs	39		1		4		1		45
Professional fees and other	7		19		4		2		32
Subtotal	72		52		21		14		159
Depreciation expense	6		—		3		—		9
Total	$	78	$	52	$	24	$	14	$	168


	Year Ended December 31, 2022
	Advisory Services		Global Workplace Solutions		Real Estate Investments		Corporate		Consolidated
Employee separation benefits	$	33	$	20	$	9	$	19	$	81
Lease exit costs	10		3		—		—		13
Professional fees and other	3		5		3		13		24
Subtotal	46		28		12		32		118
Depreciation expense	5		3		—		—		8
Total	$	51	$	31	$	12	$	32	$	126

The following table shows ending liability balances associated with major cash-based charges (dollars in millions):


	Employee separation benefits		Professional fees
Balance at January 1, 2022	$	—	$	—
Expense incurred	82		23
Payments made	(45)		(13)
Balance at December 31, 2022	37		10
Expense incurred	82		32
Payments made	(106)		(42)
Balance at December 31, 2023	$	13	$	—

Ending balances related to employee separation benefits were included in “Compensation and employee benefits payable” and the balances related to professional fees and other were included in “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. Of the total charges incurred, net of depreciation expense, $17.4 million and $33.4 million were included within the “Cost of revenue” line item, and $133.0 million and $84.1 million were included in the “Operating, administrative and other” line item in the accompanying consolidated statement of operations for the years ended December 31, 2023 and 2022, respectively.

We did not incur significant restructuring charges during the year ended December 31, 2021.