Restructuring and Reorganization Charges

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Charges

8. Restructuring and Reorganization Charges

Restructuring and reorganization charges are expenses that generally result from cost reduction initiatives and/or significant changes to our business, to include such things as involuntary employee terminations, changes in management structure or skillset, divestitures of businesses, facility consolidations and abandonments, modifications of leases, impairment of acquired intangible assets, and fundamental reorganizations impacting operational focus and direction. The following are the key restructuring and reorganizational activities we incurred over the last three years that have impacted our results from operations:

During 2021 we implemented the following restructuring and reorganizational activities:

•

We reduced our workforce by approximately 100 employees, primarily in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $3.4 million

•

We modified one of our real estate leases resulting in an earlier termination date. As a result, we incurred restructuring charges related to the accelerated depreciation of furniture and fixtures and leasehold improvements of $1.2 million.

During 2020 we implemented the following restructuring and reorganizational activities:

•

We reduced our workforce by approximately 80 employees, primarily in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $4.2 million

During 2019 we implemented the following restructuring and reorganizational activities:

•

We reduced our workforce by approximately 70 employees, primarily in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $2.5 million.

The activities discussed above resulted in total charges for 2021, 2020, and 2019 of $4.9 million, $5.3 million, and $4.8 million, respectively, which have been reflected as a separate line item in our Income Statements.

The activity in the business restructuring and reorganization reserves during 2021, 2020, and 2019 is as follows (in thousands):



	Termination			Facilities
	Benefits			Abandonment			Other			Total
January 1, 2019, balance	$	1,402		$	2,934		$	-		$	4,336
Charged to expense during period		2,499			-			2,335			4,834
Cash payments		(3,551	)		-			(1,987	)		(5,538	)
Adjustment for asset impairment		-			-			(438	)		(438	)
Adjustment for adoption of ASC 842 (1)		-			(2,934	)		-			(2,934	)
Other		472			-			90			562
December 31, 2019, balance		822			-			-			822
Charged to expense during period		4,152			-			1,176			5,328
Cash payments		(4,042	)		-			(504	)		(4,546	)
Adjustment for asset impairment		-			-			(672	)		(672	)
Other		1			-			-			1
December 31, 2020, balance		933			-			-			933
Charged to expense during period		3,419			-			1,451			4,870
Cash payments		(3,516	)		-			210			(3,306	)
Adjustment for asset impairment		-			-			(415	)		(415	)
Other (2)		(161	)		-			(1,246	)		(1,407	)
December 31, 2021, balance	$	675		$	-		$	-		$	675

(1)

With the adoption of ASC 842 on January 1, 2019, the facilities abandonment liabilities of $2.9 million were offset against our initial lease right-of-use assets on our Balance Sheet.

(2)

As noted above, during 2021 we modified a real estate lease resulting in an earlier termination date. As a result, we recorded accelerated depreciation expense of furniture and fixtures and leasehold improvements of $1.2 million.

As of December 31, 2021, $0.7 million of the business restructuring and reorganization reserves were included in current liabilities.