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RESTRUCTURING AND RELATED CHARGES
 9 Months Ended
Sep. 30, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND RELATED CHARGES RESTRUCTURING AND RELATED CHARGES
In August 2022 and April 2020, we initiated Board-approved restructuring plans. Costs incurred related to the restructuring plans are classified as Restructuring and related charges on the Condensed Consolidated Statements of Operations. The restructuring activities are summarized by plan in the sections below.
2022 Restructuring Plan
In August 2022, we initiated a multi-phase cost savings plan designed to reduce our expense structure to align with our go-forward business and financial objectives (the "2022 Cost Savings Plan"). The 2022 Cost Savings Plan included a restructuring plan, approved by our Board on August 5, 2022 (the “2022 Restructuring Plan”). The 2022 Restructuring Plan, including the first phase initiated August 2022, second phase initiated January 2023 and the third phase initiated July 2023 is expected to include an overall reduction of approximately 1,150 positions globally, with the majority of these reductions completed as of March 31, 2023 and the remainder expected to occur by the end of 2024. In connection with these actions, we expect to record total pre-tax charges of $23.6 million to $30.6 million. A majority of the pre-tax charges are expected to be paid in cash and relate to employee severance and compensation benefits, with an immaterial amount of charges related to other exit costs. We have incurred total pre-tax charges of $20.5 million since the inception of the 2022 Restructuring Plan.
The following tables summarize activity by segment related to the 2022 Restructuring Plan for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$690 $— $690 
International652 — 652 
Consolidated$1,342 $— $1,342 
(1)The employee severance and benefits costs for the three months ended September 30, 2023 are related to the termination of approximately 70 employees.
Nine Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$5,256 $1,037 $6,293 
International4,543 — 4,543 
Consolidated$9,799 $1,037 $10,836 
(1)The employee severance and benefits costs for the nine months ended September 30, 2023 are related to the termination of approximately 440 employees.
Three and Nine Months Ended September 30, 2022
Employee Severance and Benefit Costs (Credits)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$4,600 $158 $4,758 
International1,436 — 1,436 
Consolidated$6,036 $158 $6,194 

The following table summarizes restructuring liability activity for the 2022 Restructuring Plan (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2022
$175 $— $175 
Charges payable in cash9,799 1,037 10,836 
Cash payments(9,394)(738)(10,132)
Foreign currency translation55 — 55 
Balance as of September 30, 2023 (1)
$635 $299 $934 
(1)Substantially all of the remaining cash payments for costs related to the 2022 Restructuring Plan are expected to be disbursed by the end of 2024.
2020 Restructuring Plan
In April 2020, the Board approved a multi-phase restructuring plan related to our previously-announced strategic shift and as part of the cost cutting measures implemented in response to the impact of COVID-19 on our business (the "2020 Restructuring Plan"). We have incurred total pretax charges of $108.9 million since the inception of the 2020 Restructuring Plan. Our actions under this plan were substantially completed by December 31, 2021, and our current and future charges or credits will be from changes in estimates. Our 2020 Restructuring Plan included workforce reductions of approximately 1,600 positions globally, the exit or discontinuation of the use
of certain leases and other assets, impairments of our right-of-use and other long-lived assets and the exit of our operations in New Zealand and Japan.
The following tables summarize activity by segment related to the 2020 Restructuring Plan for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$44 $5 $660 $709 
International(214)(49)440 177 
Consolidated$(170)$(44)$1,100 $886 
Three Months Ended September 30, 2022
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Right-of-Use Asset Impairments and Lease-related Charges (Credits)
Total Restructuring Charges (Credits)
North America$— $(1)$(1,578)$(1,579)
International121 28 148 297 
Consolidated$121 $27 $(1,430)$(1,282)
Nine Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$44 $7 $1,204 $1,255 
International(2,696)(97)1,035 (1,758)
Consolidated$(2,652)$(90)$2,239 $(503)
Nine Months Ended September 30, 2022
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Right-of-Use Asset Impairments and Lease-related Charges (Credits)
Total Restructuring Charges (Credits)
North America$1 $129 $(404)$(274)
International305 89 1,849 2,243 
Consolidated$306 $218 $1,445 $1,969 
As a part of our 2020 Restructuring Plan, we terminated or modified several of our leases. In other cases, we vacated our leased facilities, and some of those facilities are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases. We recognized impairment related to those leases of $1.8 million and $2.9 million during the three and nine months ended September 30, 2022. See Note 2, Goodwill and Long-Lived Assets, for additional information. In addition, during the three and nine months ended September 30, 2022, we recognized a gain of $4.5 million for one of our previously impaired leases in our North America segment due to our reassessment of our 600 West Chicago lease given our option to early terminate. In January 2023, we exercised our option to early terminate our lease at 600 West Chicago, now expiring on January 31, 2024, which required us to pay a penalty of $9.6 million with our early termination notice. Prior to exercising our option to early terminate, the expiration of 600 West Chicago was January 31, 2026. Rent expense, including amortization of the right-of-use asset and accretion of the operating lease liability, sublease income, termination and modification gains and losses, and other variable lease costs related to the leased facilities vacated as part of our restructuring plan are presented within Restructuring and related charges in the
Condensed Consolidated Statements of Operations. The current and non-current liabilities associated with these leases continue to be presented within Accrued expenses and other current liabilities and Operating lease obligations in the Condensed Consolidated Balance Sheets.
The following table summarizes restructuring liability activity for the 2020 Restructuring Plan (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2022
$4,306 $301 $4,607 
Charges payable in cash and changes in estimate (1)
(2,652)(90)(2,742)
Cash payments(727)(113)(840)
Foreign currency translation12 2 14 
Balance as of September 30, 2023 (2)
$939 $100 $1,039 
(1)The credit recorded during the three and nine months ended September 30, 2023 primarily relates to the release of our estimated accrual for certain severance benefits upon expiration of the eligible payout period.
(2)Substantially all of the remaining cash payments for the 2020 Restructuring Plan costs are expected to be disbursed by the end of 2023.