DOTDASH MEREDITH RESTRUCTURING CHARGES TRANSACTION-RELATED EXPENSES

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

DOTDASH MEREDITH RESTRUCTURING CHARGES TRANSACTION-RELATED EXPENSES

DOTDASH MEREDITH RESTRUCTURING CHARGES AND TRANSACTION-RELATED EXPENSES

Restructuring Charges

During the first half of 2023, Dotdash Meredith continued to incur costs related to a voluntary retirement program announced in the first quarter of 2022 and recorded adjustments to previously accrued amounts related to a reduction in force plan, for which the related expenses were accrued primarily in the fourth quarter of 2022.

During 2022, Dotdash Meredith management committed to several actions to improve efficiencies and better align its cost structure following the acquisition of Meredith on December 1, 2021, which included: (i) the discontinuation of certain print publications and the shutdown of PeopleTV, for which the related expense was primarily reflected in the first quarter of 2022, (ii) the aforementioned voluntary retirement program, for which the related expense was primarily reflected in the first half of 2022, (iii) the consolidation of certain leased office space, for which the related expense was reflected in the third quarter of 2022 and (iv) the aforementioned reduction in force plan. These actions resulted in $80.2 million of restructuring charges incurred for the year ended December 31, 2022.

A summary of the costs incurred, payments and related accruals is presented below. The Company anticipates the estimated remaining costs associated with the 2022 restructuring events will be paid by December 31, 2023 from existing cash on hand.


			Six Months Ended June 30, 2023
	Accrued December 31, 2022		Charges Incurred		Reversal of Initial Cost		Payments		Accrued June 30, 2023		Cumulative Charges Incurred		Estimated Remaining Costs
	(In thousands)
Digital	$	10,950	$	1,291	$	(954)	$	(8,081)	$	3,206	$	39,562	$	—
Print	12,055		983		(1,492)		(7,226)		4,320		32,923		58
Other (a)	4,389		620		(264)		(3,077)		1,668		7,937		58
Total	$	27,394	$	2,894	$	(2,710)	$	(18,384)	$	9,194	$	80,422	$	116

_____________________

(a) Other comprises unallocated corporate expenses, which are corporate overhead expenses not attributable to the Digital or Print segments.


	Six Months Ended June 30, 2022
	Charges Incurred		Payments		Non-cash (b)		Accrued June 30, 2022
	(In thousands)
Digital	$	7,181	$	(2,972)	$	—	$	4,209
Print	24,360		(10,457)		(425)		13,478
Other (a)	4,548		(780)		—		3,768
Total	$	36,089	$	(14,209)	$	(425)	$	21,455

_____________________

(b) Includes $0.4 million related to the write-off of inventory.

The costs are allocated as follows in the statement of operations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(In thousands)
Cost of revenue	$	142	$	4,419	$	699	$	16,601
Selling and marketing expense	321		4,016		(541)		9,615
General and administrative expense	(180)		4,545		63		8,858
Product development expense	(58)		672		(37)		1,015

Total	$	225	$	13,652	$	184	$	36,089

Transaction-Related Expenses

Dotdash Meredith incurred transaction-related expenses in connection with the acquisition of Meredith of $1.2 million and $5.2 million for the three and six months ended June 30, 2022, respectively.