Restructuring and Reorganization Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Charges

6. RESTRUCTURING AND REORGANIZATION CHARGES

During the second quarters of 2022 and 2021, we recorded restructuring and reorganization charges of $19.0 million and $1.8 million, respectively, and for the six months ended June 30, 2022 and 2021, we recorded restructuring and reorganization charges of $32.1 million and $2.8 million, respectively.

During the six months ended June 30, 2022 we implemented the following restructuring and reorganizational activities:

•In connection with our workplace of the future philosophy, we consolidated space at seven of our leased real estate locations in the United States and India, resulting in restructuring charges of $17.3 million related to the impairments of operating lease right-of-use assets, furniture and fixtures, and leasehold improvements and $2.4 million of accelerated depreciation.

•In June 2022, our management team, with the support of our Board, decided to shut-down the MobileCard business, in which we had acquired a controlling interest in July of 2021 (see Note 5). MobileCard was not meeting its projected targets. 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 employees, which resulted in restructuring charges related to involuntary terminations of $0.6 million.

•We reduced our workforce by approximately 20 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 $2.9 million.

The activity in the business restructuring and reorganization reserves during the six months ended June 30, 2022 was as follows (in thousands):

	Termination
	Benefits			Other			Total
January 1, 2022, balance	$	675		$	-		$	675
Charged to expense during period		3,460			28,651			32,111
Cash payments		(1,929	)		(1,935	)		(3,864	)
Adjustment for asset impairment		-			(24,296	)		(24,296	)
Adjustment for accelerated depreciation		-			(2,420	)		(2,420	)
Other		327			-			327
June 30, 2022, balance	$	2,533		$	-		$	2,533

As of June 30, 2022, the entire business restructuring and reorganization reserves were included in current liabilities.