Restructuring Activities

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

During the year ended December 31, 2022, the Company enacted certain workforce reductions, wound down Modus and terminated certain of its operating leases. The workforce reductions were part of a broader plan by the Company to take meaningful actions to improve the alignment between the Company’s organizational structure and its long-term business strategy, drive cost efficiencies enabled by the Company’s technology and other competitive advantages and continue to drive toward profitability and positive free cash flow. In addition to the workforce reductions, restructuring actions have included and are expected to include, but not be limited to, a reduction in U.S. hiring and backfills resulting from attrition; a reduction in spend through third-party vendors; eliminating the use of incentives when recruiting new agents and reducing incentives for existing agents; a planned slow down in M&A activity and new market expansion; and a review of occupancy costs with a view to consolidating offices and reducing related costs.

During the three months ended March 31, 2023, the Company implemented a further workforce reduction. During the three months ended June 30, 2023, the Company took actions to reduce its occupancy costs, the most significant being the scaling down of its New York administrative office. For the three and six months ended June 30, 2023, the Company incurred restructuring costs of $15.9 million and $26.0 million, respectively, in connection with these actions. These costs are a result of severance and other termination benefits for employees whose roles were eliminated and lease termination costs as a result of the accelerated amortization of various right-of-use assets and other lease-related costs. These expenses have been presented within the Restructuring costs line in the condensed consolidated statements of operations. The Company incurred additional non-cash charges of approximately $1.4 million and $5.3 million for the three and six months

ended June 30, 2023, respectively, associated with the write-down of fixed assets for certain real estate leases that have been exited, or partially exited. These costs have been included within the Depreciation and amortization line in the condensed consolidated statements of operations.

The following table summarizes the total costs incurred in connection with the Company's restructuring activities taken during the three and six months ended June 30, 2023 (in millions):


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Severance related personnel costs	$	—	$	8.9
Lease termination costs	15.9		17.1

Write-down of fixed assets	1.4		5.3

Total expense	$	17.3	$	31.3

The total costs incurred in connection with the Company's restructuring activities taken during the three and six months ended June 30, 2023 were included in the condensed consolidated statements of operations as follows (in millions):


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Restructuring costs	$	15.9	$	26.0
Depreciation and amortization	1.4		5.3
Total expense	$	17.3	$	31.3

The following table summarizes the estimated timing of the Company's future lease and lease-related payments, net of amounts contractually subleased, related to restructuring activities for lease termination costs as of June 30, 2023 (in millions):


	Payment Due by Period
Remaining 2023	$	7.7
2024	13.9
2025	6.7
2026	2.8
Thereafter	1.6
Total	$	32.7