Restructuring and Transformation Activities

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Transformation Activities

2024 Actions

In the first quarter of 2024, the Company incurred $2.3 million of restructuring charges and transformation fees as a continuation of the actions that were announced in the second quarter of 2023 as part of the comprehensive transformation initiative. The transformation activities include $1.1 million of severance and $1.2 million of costs to execute the transformation through the use of an external consultant. The severance and transformation costs are recorded in selling, general and administrative ("SG&A") expenses in the consolidated statements of earnings.

The restructuring and transformation costs included in SG&A are detailed below for the first quarter of 2024 (in millions of dollars):



	Severance Costs		Transformation Costs		Total

Professional & Industrial	$	0.1	$	—	$	0.1


Outsourcing & Consulting	0.6		—		0.6
Corporate	0.4		1.2		1.6
Total	$	1.1	$	1.2	$	2.3

2023 Actions

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 and transformation costs included in SG&A are detailed below for the first quarter of 2023 (in millions of dollars):



	Severance Costs		Lease Termination Costs, Transformation and Other		Total

Professional & Industrial	$	2.7	$	0.3	$	3.0
Science, Engineering & Technology	0.4		0.1		0.5
Education	0.1		—		0.1
Outsourcing & Consulting	0.6		—		0.6
International	0.6		—		0.6
Corporate	0.2		1.6		1.8
Total	$	4.6	$	2.0	$	6.6

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 2023	$	15.1
Accruals	2.3






Reductions for cash payments	(11.0)
Disposition of EMEA staffing operations	(1.5)
Accrual adjustments	(0.2)
Balance as of first quarter-end 2024	$	4.7

The remaining balance of $4.7 million as of first quarter-end 2024 primarily represents the costs to execute the transformation initiatives and severance costs, and the majority is expected to be paid by the end of 2024. No material adjustments are expected to be recorded.