Restructuring and related charges

9 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

On May 15, 2024, the Company's Board of Directors approved a restructuring plan (the "2025 restructuring plan") designed to strengthen and support the Company's financial and operational efficiencies. On September 5, 2024, the Company’s Board of Directors approved a $70 million increase to the 2025 restructuring plan, resulting in an updated restructuring plan of approximately $140 million to $160 million of pre-tax restructuring and related charges to be incurred during Fiscal 2025 and the fiscal year ending March 31, 2026 ("Fiscal 2026"), including:

•Up to $75 million in cash-related charges, consisting of approximately $30 million in employee severance and benefits costs and $45 million related to various transformational initiatives; and

•Up to $85 million in non-cash charges, including approximately $7 million in employee severance and benefits costs and $78 million in facility, software, and other asset-related charges and impairments.

Restructuring and related charges are included in the Company's Corporate Other segment. The costs recorded during the three and nine months ended December 31, 2024 were primarily North America related. The summary of these costs, as well as the Company's current estimates of the remaining amount expected to be incurred in connection with the 2025 restructuring plan is as follows:


					Estimated Restructuring and Related Charges (1)
	Three Months Ended December 31, 2024		Nine Months Ended December 31, 2024		Remaining to be incurred		Total to be incurred under plan
Costs recorded in restructuring charges:
Employee-related costs	$	1,584	$	13,322
Facility-related costs	5,706		18,201
Other restructuring costs	6,655		10,720
Total costs recorded in restructuring charges	$	13,945	$	42,243	$	67,757	$	110,000
Costs recorded in selling, general and administrative expenses:
Employee related costs	—		9,460
Other transformation initiatives	3,819		5,740
Total costs recorded in selling, general and administrative expenses	$	3,819	$	15,200	$	34,800	$	50,000
Total restructuring and related charges	$	17,764	$	57,443	$	102,557	$	160,000

(1) Estimated restructuring and related charges reflect the high-end of the range of the total estimated charges expected to be incurred by the Company in connection with the 2025 restructuring plan.

Restructuring and related charges and recoveries require the Company to make certain judgments and estimates regarding the amount and timing as to when these charges or recoveries occur. The estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. The restructuring reserve is recorded within current and long-term liabilities on the Condensed Consolidated Balance Sheets. On a quarterly basis, the Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate, as new or updated information becomes available.

A summary of the activity in the restructuring reserve related to the Company's 2025 restructuring plan for the nine months ended December 31, 2024 is as follows:


	Employee Related Costs		Facility Related Costs		Other Restructuring Related Costs
Balance as of March 31, 2024	$	—	$	—	$	—
Net additions (recoveries) charged to expense (1)	13,311		5,800		12,908
Cash payments	(10,827)		(5,800)		(7,725)
Foreign exchange and other	45		—		—
Balance as of December 31, 2024	$	2,529	$	—	$	5,183

(1) Amount excludes approximately $15.5 million of non-cash facility-related and other charges and a $5.3 million non-cash gain from the sale of the MapMyFitness platform.