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Restructuring, Business Transformation and Other Cost Saving Initiatives | 6 Months Ended
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Jun. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring, Business Transformation and Other Cost Saving Initiatives | RESTRUCTURING, BUSINESS TRANSFORMATION AND OTHER COST SAVING INITIATIVES 2022 Cost Saving Initiatives In December 2021 and May 2022 we announced our plans to implement a series of cost-reduction measures during 2022. These savings are being achieved through a number of initiatives, including reductions to our workforce, the substantial elimination of our commercial ADUHELM infrastructure, the consolidation of certain real estate locations and operating efficiencies across our selling, general and administrative and research and development functions. Under these initiatives, we expect to incur restructuring charges ranging from approximately $130.0 million to $150.0 million. These amounts are primarily related to severance and are expected to be substantially incurred and paid by the end of 2022. For the three and six months ended June 30, 2022, we recognized approximately $70.6 million and $108.7 million, respectively, of pre-tax restructuring charges related to our 2022 cost saving initiatives, of which approximately $60.9 million and $88.6 million, respectively, consisted of employee severance costs. These costs were recorded in restructuring charges in our condensed consolidated statements of income. Our restructuring reserve is included in accrued expense and other in our condensed consolidated balance sheets. Following an evaluation of our current capacity needs, in March 2022 we ceased using a patient services office space in Durham, North Carolina. Our decision to cease use of the facility resulted in the immediate expense of certain leasehold improvements and other assets at this facility. As a result, for the six months ended June 30, 2022, we recognized approximately $10.4 million of accelerated depreciation expense, which was recorded in restructuring charges in our condensed consolidated statements of income. In May 2022 we entered into a lease assignment agreement whereby we assigned our remaining lease obligations to an external third party. As a result of the lease assignment, we derecognized the related operating lease obligation and right-of-use asset as of June 30, 2022. For the three and six months ended June 30, 2022, we recorded other restructuring costs of approximately $9.7 million, which were recorded in restructuring charges in our condensed consolidated statements of income. Other restructuring costs includes items such as facility closure costs, employee non-severance expense, asset write-offs and other costs. The following table summarizes the charges and spending related to our 2022 workforce reductions for the three and six months ended June 30, 2022:
(In millions) |  | Total |  |  |  |
Restructuring reserve as of December 31, 2021 |  | $ | — |  |  |  |  |
Expense |  | 27.7 |  |  |  |  |
Payment |  | (6.2) |  |  |  |  |
Restructuring reserve as of March 31, 2022 |  | $ | 21.5 |  |  |  |  |
Expense |  | 60.9 |  |  |  |  |
Payment |  | (29.7) |  |  |  |  |
Adjustment |  | (0.5) |  |  |  |  |
Restructuring reserve as of June 30, 2022 |  | $ | 52.2 |  |  |  |  |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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