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RESTRUCTURING AND RELATED CHARGES
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND RELATED CHARGES RESTRUCTURING AND RELATED CHARGES
In August 2022 and April 2020, we initiated Board-approved restructuring plans. Costs incurred related to the restructuring plans are classified as Restructuring and related charges on the Consolidated Statements of Operations. The restructuring activities are summarized by plan in the sections below.
2022 Restructuring Plan
In August 2022, we initiated a multi-phase cost savings plan designed to reduce our expense structure to align with our go-forward business and financial objectives (the “2022 Cost Savings Plan”). The 2022 Cost Savings Plan included a restructuring plan, approved by our Board on August 5, 2022 (the “2022 Restructuring Plan”). The first phase of the 2022 Restructuring Plan includes an overall reduction of approximately 500 positions globally, with the majority of these reductions completed by the end of 2022 and the remainder expected in 2023. In connection with the first phase, we expect to record total pre-tax charges of $10.0 million to $20.0 million. Substantially all of the pre-tax charges are expected to be paid in cash and will relate to employee severance and compensation benefits, with an immaterial amount of charges related to other exit costs. We have incurred total pretax charges of $9.6 million since the inception of the 2022 Restructuring Plan.
The following tables summarize costs incurred by segment related to the 2022 Restructuring Plan for the year ended December 31, 2022 (in thousands):

Year Ended December 31, 2022
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$8,024 $161 $8,185 
International1,464 — 1,464 
Consolidated$9,488 $161 $9,649 
(1)The employee severance and benefits costs for the year ended December 31, 2022 are related to the termination of approximately 380 employees, of which 16 are still completing their notice period and legally-required severance and benefits have been recognized as of December 31, 2022. Additional severance and benefits costs related to the remaining 16 employees may be incurred in future periods.
The following table summarizes restructuring liability activity for the 2022 Restructuring Plan (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2021
$— $— $— 
Charges payable in cash9,488 161 9,649 
Cash payments(9,315)(161)(9,476)
Foreign currency translation2 — 2 
Balance as of December 31, 2022 (1)
$175 $— $175 
(1)Substantially all of the remaining cash payments for the 2022 Restructuring Plan costs are expected to be disbursed through 2023.
In January 2023, the Board approved the second phase of the 2022 Restructuring Plan, which is expected to include an overall reduction of approximately 500 positions globally, with the majority of these reductions expected to occur by the end of the second quarter 2023. In connection with the second phase, we expect to record total pre-tax charges of $10.0 million to $20.0 million. A majority of the pre-tax charges for the second phase are expected to be paid in cash and primarily relate to employee severance and compensation benefits, with an immaterial amount of charges related to other exit costs.
2020 Restructuring Plan
In April 2020, the Board approved a multi-phase restructuring plan related to our previously-announced strategic shift and as part of the cost cutting measures implemented in response to the impact of COVID-19 on our business (the "2020 Restructuring Plan"). We have incurred total pretax charges of $109.4 million since the inception of the 2020 Restructuring Plan. Our actions under this plan were substantially completed by December 31, 2021, and our current and future charges or credits will be from changes in estimates. Our 2020 Restructuring Plan included workforce reductions of approximately 1,600 positions globally, the exit or discontinuation of the use of certain leases and other assets, impairments of our right-of-use and other long-lived assets, and the exit of our operations in New Zealand and Japan. In the first quarter 2021, we substantially liquidated our subsidiary in Japan and reclassified $32.3 million of cumulative foreign currency translation gains into earnings, which is presented in Other income (expense), net on the Consolidated Statements of Operations for the year ended December 31, 2021.
The following tables summarize costs incurred by segment related to the 2020 Restructuring Plan for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year Ended December 31, 2022
Employee Severance and Benefit Costs (Credits)Legal and Advisory CostsProperty, Equipment and Software ImpairmentsRight-of-Use Asset Impairments and Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$1 $155 $— $418 $574 
International(95)92 — 2,130 2,127 
Consolidated$(94)$247 $— $2,548 $2,701 
Year Ended December 31, 2021
Employee Severance and Benefit Costs (Credits)Legal and Advisory CostsProperty, Equipment and Software ImpairmentsRight-of-Use Asset Impairments and Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$458 $1,696 $602 $7,278 $10,034 
International28,345 681 268 2,567 31,861 
Consolidated$28,803 $2,377 $870 $9,845 $41,895 
Year Ended December 31, 2020
Employee Severance and Benefit Costs (Credits)Legal and Advisory CostsProperty, Equipment and Software ImpairmentsRight-of-Use Asset Impairments and Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$17,322 $1,308 $5,322 $13,775 $37,727 
International20,679 829 291 5,310 27,109 
Consolidated$38,001 $2,137 $5,613 $19,085 $64,836 
As a part of our 2020 Restructuring Plan, we terminated or modified several of our leases. In other cases we vacated our leased facilities, and some of those facilities are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases. For the year ended December 31, 2022, we recognized long-lived asset impairment related to those leases of $1.8 million and $1.2 million in our North America and International segments. In addition, during the year ended December 31, 2022, we recognized a gain of $4.5 million for one of our previously-impaired leases in our North America segment due to our reassessment of our 600 West Chicago lease given our option to early terminate. For the year ended December 31, 2021, we recognized long-lived asset impairment of $5.5 million and $2.2 million in our North America and International segments. For the year ended December 31, 2020, we recognized long-lived asset impairment of $18.1 million and $3.5 million in our North America and International segments. See Note 3, Property, Equipment and Software, Net and Note 8, Leases for additional information. Rent expense, including amortization of the right-of-use asset and accretion of the operating lease liability, sublease income, termination and modification gains and losses, and other variable lease costs related to the leased facilities vacated as part of our 2020 Restructuring Plan are presented within Restructuring and related charges in the Consolidated Statements of Operations. The current and non-current liabilities associated with these leases continue to be presented within Accrued expenses and other current liabilities and Operating lease obligations in the Consolidated Balance Sheets.
The following table summarizes restructuring liability activity for the years ended December 31, 2022 and 2021 (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2020
$13,297 $834 $14,131 
Charges payable in cash28,803 2,376 31,179 
Cash payments(30,100)(2,897)(32,997)
Foreign currency translation(962)(2)(964)
Balance as of December 31, 2021$11,038 $311 $11,349 
Charges payable in cash(94)247 153 
Cash payments(6,096)(212)(6,308)
Foreign currency translation(542)(45)(587)
Balance as of December 31, 2022 (1)
$4,306 $301 $4,607 
(1)Substantially all of the remaining cash payments for the 2020 Restructuring Plan costs are expected to be disbursed by the end of 2023.