Restructuring and Related Charges

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

The Company incurs severance and other employee separation costs related to employee terminations that are not tied to a formal restructuring plan. The Company incurred $0.3 million and $1.5 million of severance and other employee separation charges during the three months ended March 31, 2024 and 2025, respectively, related to the elimination of certain positions. These severance and other employee separation charges are included in Restructuring costs on the unaudited condensed consolidated statements of income.

The following details the changes in the Company’s severance and other employee separation costs restructuring liabilities during the three months ended March 31, 2024 and 2025 (in thousands):


	Severance Restructuring Liability
Balance as of December 31, 2023	$	795
Restructuring and other charges	259
Payments	(937)
Balance as of March 31, 2024	$	117

Balance as of December 31, 2024(1)	$	534
Restructuring and other charges	1,537
Payments	(1,285)
Balance as of March 31, 2025(1)	$	786

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(1)Restructuring liabilities are included in accounts payable and accrued expenses in the unaudited condensed consolidated balance sheets.

The Company evaluates its owned and leased real estate portfolio on an ongoing basis, which has resulted in the consolidation and sale of underutilized facilities. The Company recorded approximately $0.1 million of right-of-use lease asset charges during the three months ended March 31, 2025 related to facilities that were consolidated during the period. The Company also recorded fixed asset impairment charges of approximately $0.1 million during the three months ended March 31, 2025. There were no right-of-use lease asset charges or fixed asset impairment charges during the three months ended March 31, 2024. The Company recorded a net benefit related to the early termination and related extinguishment of lease liabilities of approximately $6.2 million during the three months ended March 31, 2024. These right-of-use lease asset and fixed asset impairment charges and net benefits from early lease terminations are included in Restructuring costs on the unaudited condensed consolidated statements of income.