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Restructuring and Reorganization Charges | 12 Months Ended
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Dec. 31, 2023
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 2023 we implemented the following restructuring and reorganizational activities: • We decided to dissolve the Keydok business, which we had acquired in 2021 (see Note 7). As a result, we recorded net impairment charges of $1.2 million, to include the write-off of the acquired goodwill. We also subsequently terminated approximately 30 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $1.6 million. • We reduced our workforce by approximately 110 employees, mainly in the U.S., as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $3.5 million. • We modified three of our real estate leases, at previously closed locations in India and the U.S., resulting in earlier termination dates and the recognition of a $4.3 million gain. We also recorded $0.5 million of additional operating lease right-of-use asset impairments. • We exited two reseller agreements that were acquired with the acquisition of Forte Payment Systems, Inc. in 2018. As a result, we incurred expenses of $9.9 million, of which $1.8 million has been paid and $8.1 million was accrued as of December 31, 2023. During 2022 we implemented the following restructuring and reorganizational activities: • In connection with our flexible work approach, we consolidated or closed office space at thirteen of our leased real estate locations in Australia, India, Sweden, and the U.S., resulting in restructuring charges of $23.1 million related to the impairments of operating lease right-of-use assets, furniture and fixtures, and leasehold improvements, and $4.4 million of accelerated depreciation. • We decided to dissolve the MobileCard business, as it was not meeting its projected targets. We had acquired a controlling interest in July of 2021 (see Note 7). As a result, we recorded net impairment charges of $7.0 million, to include the write-offs of the remaining acquired intangible assets, goodwill, and the noncontrolling interest. We also terminated approximately 40 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $0.6 million. • We reduced our workforce by approximately 100 employees, mainly in North America, as a result of organizational changes and efficiencies, to include a margin improvement initiative that began in the second quarter of 2022. As a result, we incurred restructuring charges related to involuntary terminations of $7.1 million. During 2021 we implemented the following restructuring and reorganizations activities: • We reduced our workforce by approximately 100 employees, mainly 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 in the U.S., 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. The activities discussed above resulted in total charges for 2023, 2022, and 2021 of $16.3 million, $46.3 million, and $4.9 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 2023, 2022, and 2021 is as follows (in thousands):
|  | Termination Benefits |  |  | Other |  |  | Total |
January 1, 2021, balance |  | $ | 933 |  |  | $ | - |  |  | $ | 933 |
Charged to expense during period |  |  | 3,419 |  |  |  | 1,451 |  |  |  | 4,870 |
Cash payments |  |  | (3,516 | ) |  |  | 210 |  |  |  | (3,306 | )
Adjustment for accelerated depreciation |  |  | - |  |  |  | (1,246 | ) |  |  | (1,246 | )
Adjustment for asset impairment |  |  | - |  |  |  | (415 | ) |  |  | (415 | )
Other |  |  | (161 | ) |  |  | - |  |  |  | (161 | )
December 31, 2021, balance |  |  | 675 |  |  |  | - |  |  |  | 675 |
Charged to expense during period |  |  | 7,720 |  |  |  | 38,588 |  |  |  | 46,308 |
Cash payments |  |  | (7,665 | ) |  |  | (4,098 | ) |  |  | (11,763 | )
Adjustment for accelerated depreciation |  |  | - |  |  |  | (30,121 | ) |  |  | (30,121 | )
Adjustment for asset impairment |  |  | - |  |  |  | (4,369 | ) |  |  | (4,369 | )
Other |  |  | 1,761 |  |  |  | - |  |  |  | 1,761 |
December 31, 2022, balance |  |  | 2,491 |  |  |  | - |  |  |  | 2,491 |
Charged to expense during period |  |  | 5,128 |  |  |  | 11,208 |  |  |  | 16,336 |
Cash payments |  |  | (7,027 | ) |  |  | (5,386 | ) |  |  | (12,413 | )
Adjustment for accelerated depreciation |  |  | - |  |  |  | (396 | ) |  |  | (396 | )
Adjustment for asset impairment |  |  | - |  |  |  | (1,675 | ) |  |  | (1,675 | )
Adjustment for gain on lease modifications |  |  | - |  |  |  | 4,349 |  |  |  | 4,349 |
Other |  |  | 842 |  |  |  | - |  |  |  | 842 |
December 31, 2023, balance |  | $ | 1,434 |  |  | $ | 8,100 |  |  | $ | 9,534 |
As of December 31, 2023, $6.9 million of the business restructuring and reorganization reserves were included in current liabilities.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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