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Restructuring | 3 Months Ended
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Mar. 31, 2023
Restructuring and Related Activities [Abstract] |
Restructuring | 17. Restructuring Transformation Program On February 20, 2023, the Company approved a two-year strategic transformation restructuring program (the “Transformation Program”) intended to accelerate the Company’s back-office infrastructure into the cloud and transform its operating model leveraging technology in order to reduce its overall future costs. The Transformation Program includes process and system optimization, third party costs associated with technology infrastructure transformation, and elimination of full-time positions. The Company currently expects to record in the aggregate approximately $140 million in pre-tax restructuring charges over the next two years. The restructuring charges are expected to include severance charges with an estimated range from $20 million to $30 million over the two-year period and other restructuring charges related to items such as data center exit costs, third party fees, and costs associated with transitioning existing technology and processes with an estimated range of $100 million to $120 million over the two-year period. The Company estimates an annual savings of over $100 million after the Transformation Program is completed. The Transformation Program commenced in the first quarter of 2023 and is expected to be substantially completed over an estimated two-year period. From the inception of the plan through March 31, 2023, the Company has incurred total expenses of $26 million. These charges are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss). The following table summarizes restructuring costs by type that have been incurred.
|  | Three Months Ended |  |  |  |  |  |  | Estimated |  |  | Estimated |
|  | March 31, |  |  | Inception to |  |  | Remaining |  |  | Total |
|  | 2023 |  |  | Date |  |  | Costs |  |  | Cost |
Employer Solutions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Related Benefits |  | $ |  | 1 |  |  | $ |  | 1 |  |  | $ |  | 15 |  |  | $ |  | 16 |
Other Restructuring Costs(1) |  |  |  | 19 |  |  |  |  | 19 |  |  |  |  | 80 |  |  |  |  | 99 |
Total Employer Solutions |  | $ |  | 20 |  |  | $ |  | 20 |  |  | $ |  | 95 |  |  | $ |  | 115 |
Professional Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Related Benefits |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 5 |  |  | $ |  | 5 |
Other Restructuring Costs(1) |  |  |  | — |  |  |  |  | — |  |  |  |  | 4 |  |  |  |  | 4 |
Total Professional Services |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 9 |  |  | $ |  | 9 |
Corporate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Related Benefits |  | $ |  | 5 |  |  | $ |  | 5 |  |  | $ |  | 8 |  |  | $ |  | 13 |
Other Restructuring Costs(1) |  |  |  | 1 |  |  |  |  | 1 |  |  |  |  | 2 |  |  |  |  | 3 |
Total Corporate |  | $ |  | 6 |  |  | $ |  | 6 |  |  | $ |  | 10 |  |  | $ |  | 16 |
Total Restructuring Costs |  | $ |  | 26 |  |  | $ |  | 26 |  |  | $ |  | 114 |  |  | $ |  | 140 |
(1) Other restructuring costs associated with the Transformation Program primarily include data center exit costs, third party fees associated with the restructuring, and costs associated with transitioning existing technology and processes. As of March 31, 2023, approximatel y $12 million of the Company's total restructuring liability is unpaid and is recorded in Accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets.
| Severance and |  |  | Estimated |  |  |  |  |
| Related Benefits |  |  | Remaining Costs |  |  | Total |
Accrued restructuring liability as of December 31, 2022 | $ |  | — |  |  | $ |  | — |  |  | $ |  | — |
Restructuring charges |  |  | 6 |  |  |  |  | 20 |  |  |  |  | 26 |
Cash payments |  |  | (1 | ) |  |  |  | (16 | ) |  |  |  | (17 | )
Accrued restructuring liability as of March 31, 2023 | $ |  | 5 |  |  | $ |  | 4 |  |  | $ |  | 9 |
Plan During the third quarter of 2019, management initiated a restructuring and integration plan (the “Plan”) following the completion of the Hodges acquisition and in anticipation of the NGA HR acquisition, which was completed on November 1, 2019. The Plan was intended to integrate and streamline operations across the Company and to generate cost reductions related to position eliminations and facility and system rationalizations. This restructuring and integration plan was complete as of December 31, 2022. The following table summarizes the changes in the accrual balance:
| Severance and |  |  | Estimated |  |  |  |  |
| Related Benefits |  |  | Remaining Costs |  |  | Total |
Accrued restructuring liability as of December 31, 2022 | $ |  | 4 |  |  | $ |  | 4 |  |  | $ |  | 8 |
Cash payments |  |  | (1 | ) |  |  |  | (4 | ) |  |  |  | (5 | )
Accrued restructuring liability as of March 31, 2023 | $ |  | 3 |  |  | $ |  | — |  |  | $ |  | 3 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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