Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

In 2022, the Company embarked on a restructuring program to improve execution and drive efficiency across the organization. This program is a framework for identifying, prioritizing and executing operational improvements. Restructuring charges incurred consist of severance and other employee costs, costs for optimizing the Company’s geographic presence (“Facility Footprint Optimization”), and consulting and other costs. There were no such charges for the three and nine months ended September 30, 2022.

The following table summarizes the changes in the Company’s accrued restructuring balance (in thousands):


	Severance and Other Employee Costs		Facility Footprint Optimization		Consulting and Implementation Costs		Total
Balance as of December 31, 2022	$	559	$	—	$	960	$	1,519
Restructuring charges incurred	3,105		913		106		4,124
Impairment of facility related assets	—		560		—		560

Cash payments and other adjustments(1)	(1,285)		(564)		(346)		(2,195)
Balance as of March 31, 2023	$	2,379	$	909	$	720	$	4,008
Restructuring charges incurred	1,893		271		581		2,745
Impairment of facility related assets	—		329		—		329

Cash payments and other adjustments(1)	(1,634)		(306)		(1,007)		(2,947)
Balance as of June 30, 2023	$	2,638	$	1,203	$	294	$	4,135
Restructuring charges incurred	362		641		896		1,899
Impairment of facility related assets	—		226		—		226

Cash payments and other adjustments(1)	(1,613)		(234)		(642)		(2,489)
Balance as of September 30, 2023	$	1,387	$	1,836	$	548	$	3,771
Current liabilities							$	3,771
Long-term liabilities							—
							$	3,771

(1) Other adjustments include non-cash asset charges related to Facility Footprint Optimization costs.

Restructuring activities are ongoing and the Company expects to incur additional restructuring charges of approximately $5.9 million. The Company estimates these additional restructuring charges to be comprised of approximately $0.7 million in severance and other employee costs, $4.5 million of Facility Footprint Optimization costs, and $0.7 million of consulting and other costs.

In the third quarter of 2023, in response to new incremental information including ongoing negotiations with counterparties, the Company revised its original restructuring plan cost and timing of approved projects. As a result, the Company anticipates incurring further restructuring charges extending into 2024. The Company expects these charges will ultimately result in enhanced operational efficiencies as it continues to optimize its geographic presence.