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Restructuring | 6 Months Ended
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Jul. 02, 2023
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring and Transformation Activities 2023 Actions In the second quarter of 2023, the Company announced a comprehensive transformation initiative that includes actions that will further streamline the Company's operating model to enhance organizational efficiency and effectiveness. The total costs incurred related to these transformation activities in the second quarter of 2023 totaled $8.0 million. The transformation activities included $4.5 million of costs to execute the transformation initiatives through the use of an external consultant, a $2.4 million impairment charge for right-of-use assets related to an unoccupied office space lease and additional severance of $1.1 million, net of adjustments. The impairment charge related to the right-of-use assets is recorded in the asset impairment charge in the consolidated statements of earnings. The costs to execute and severance are included in the $5.6 million of restructuring costs incurred in the second quarter of 2023, net of prior period adjustments, and are recorded in selling, general and administrative ("SG&A") expenses in the consolidated statements of earnings, as detailed further below. In the first quarter of 2023, the Company undertook restructuring actions to further our cost management efforts in response to the current demand levels and reflect a repositioning of our P&I staffing business to better capitalize on opportunities in local markets. Restructuring costs incurred in the first quarter of 2023 totaled $6.6 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings. The restructuring costs included in SG&A are detailed below for the second quarter and June year-to-date 2023 (in millions of dollars):
| Second Quarter |  | June Year to Date
| Severance Costs |  | Lease Termination Costs, Transformation and Other |  | Total |  | Severance Costs |  | Lease Termination Costs, Transformation and Other |  | Total
Professional & Industrial | $ | 0.3 |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | 3.0 |  |  | $ | 0.3 |  |  | $ | 3.3 |
Science, Engineering & Technology | — |  |  | — |  |  | — |  |  | 0.4 |  |  | 0.1 |  |  | 0.5 |
Education | 0.3 |  |  | — |  |  | 0.3 |  |  | 0.4 |  |  | — |  |  | 0.4 |
Outsourcing & Consulting | (0.1) |  |  | — |  |  | (0.1) |  |  | 0.5 |  |  | — |  |  | 0.5 |
International | — |  |  | — |  |  | — |  |  | 0.6 |  |  | — |  |  | 0.6 |
Corporate | 0.6 |  |  | 4.5 |  |  | 5.1 |  |  | 0.8 |  |  | 6.1 |  |  | 6.9 |
Total | $ | 1.1 |  |  | $ | 4.5 |  |  | $ | 5.6 |  |  | $ | 5.7 |  |  | $ | 6.5 |  |  | $ | 12.2 |
Subsequent to the second quarter of 2023, the Company announced strategic restructuring actions as part of the comprehensive transformation initiative. The actions will build on strategic progress to monetize non-core assets, reinvest capital in organic and inorganic growth initiatives, and shift to higher-margin, higher-growth business mix. The expected range for the restructuring charges to be incurred in the third quarter of 2023 as a result of these actions is $7.5 million to $8.5 million. 2022 Actions In the first quarter of 2022, the Company took restructuring actions designed to increase efficiency. There were no restructuring charges in the second quarter of 2022. Restructuring costs incurred in the first quarter of 2022 totaled $1.7 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings, as detailed below (in millions of dollars):
| Severance Costs |  | Lease Termination Costs |  | Total
Professional & Industrial | $ | 0.1 |  |  | $ | 0.2 |  |  | $ | 0.3 |
Education | 0.4 |  |  | — |  |  | 0.4 |
Outsourcing & Consulting | 0.2 |  |  | — |  |  | 0.2 |
Corporate | 0.8 |  |  | — |  |  | 0.8 |
Total | $ | 1.5 |  |  | $ | 0.2 |  |  | $ | 1.7 |
Accrual Summary A summary of the global restructuring balance sheet accrual, included in accrued payroll and related taxes and accounts payable and accrued liabilities in the consolidated balance sheet, is detailed below (in millions of dollars):
Balance as of year-end 2022 | $ | 0.3 |
Accruals | 6.6 |
Reductions for cash payments | (1.0) |
Balance as of first quarter-end 2023 | 5.9 |
Accruals | 5.9 |
Reductions for cash payments | (3.0) |
Accrual adjustments | (0.3) |
Balance as of second quarter-end 2023 | $ | 8.5 |
The remaining balance of $8.5 million as of second quarter-end 2023 primarily represents the costs to execute the transformation initiatives and severance costs, and the majority is expected to be paid by year-end 2023. No material adjustments are expected to be recorded.

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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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