XML 46 R29.htm IDEA: XBRL DOCUMENT v3.25.0.1
IMPAIRMENT AND RESTRUCTURING
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
IMPAIRMENT AND RESTRUCTURING IMPAIRMENT AND RESTRUCTURING
Impairment
We incurred impairment charges during 2024, 2023, and 2022 as follows:
($ in millions)202420232022
Inventory$28 $— $— 
Lease— 16 — 
Equity method investment— 8 — 
Investment in management contract2 4 — 
Hotel— 2 — 
Property & equipment
— 2 2 
$30 $32 $2 
Inventory Impairment
During 2024, we recorded a non-cash impairment charge of $28 million related to Legacy-Welk inventory. The impairment charge reflects an elongated pace of sales at a higher marketing and selling cost than that estimated in purchase accounting. We used the income approach to estimate the fair value less costs to sell of the assets. Under the income approach, a Level 3 input, fair value is measured through a discounted cash flow. Under the income approach, we contemplated alternative uses to comply with the highest and best use provisions of ASC Topic 820, “Fair Value Measurements.”
Lease Impairment
During the first quarter of 2023, the lease term commenced for the finance lease arrangement for our new corporate headquarters in Orlando, Florida, upon the substantial completion of construction. Upon our relocation to the new corporate headquarters during the fourth quarter of 2023, we recorded a non-cash impairment charge of $16 million to the right-to-use asset related to the operating leases for our previous corporate headquarters as we did not expect proceeds from subleasing these spaces to exceed our future obligations under the operating leases.
Restructuring Costs
In November 2024, we announced the creation of a Strategic Business Operations office focused on accelerating our growth and driving operating efficiencies in all areas of our business while increasing organizational agility. We intend to modernize and optimize our processes and systems, including through advanced technology and automation, while focusing on efforts to increase sales efficiency and inventory optimization while capturing significant savings from initiatives related to procurement and corporate overhead. During 2024, we incurred $10 million of restructuring charges, including $6 million of severance and $4 million of other costs associated with these efforts. As of December 31, 2024, $6 million was accrued on our Balance Sheet related to these charges.
During 2023, we realigned our management structure and made headcount reductions, resulting in severance costs of $6 million associated with the elimination of certain positions. As of December 31, 2023, $5 million was accrued on our Balance Sheet related to these charges.