Restructuring and Other Charges

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

During the three months ended March 31, 2024, we implemented restructuring activities to further reduce operating expenses and improve cash flows through a reduction in force, which impacted approximately 180 employees. In conjunction with these restructuring activities, we recognized $11.1 million of pre-tax restructuring charges in our statement of operations related to severance, employee benefits and equity-based compensation. Of the $11.1 million of pre-tax restructuring charges recognized during the three months ended March 31, 2024, $4.5 million and $6.1 million were recognized within our A&C and Core segments, respectively, and $0.5 million was recognized as corporate overhead.

Cash payments of $1.3 million related to the restructuring activities described above were made during the three months ended March 31, 2024. We expect to make substantially all remaining restructuring payments by the end of the third quarter of 2024.

The following table shows the total amount incurred and the accrued restructuring costs, which are recorded in accrued expenses and other current liabilities in our balance sheet, for severance and employee benefits:


	Accrued Restructuring Costs
Accrued restructuring costs as of December 31, 2023	$	7.4
Restructuring costs incurred during the three months ended March 31, 2024(1)	10.6
Amount paid during the three months ended March 31, 2024	(8.0)
Accrued restructuring costs as of March 31, 2024	$	10.0

Accrued restructuring costs as of December 31, 2022	$	—
Restructuring costs incurred during the three months ended March 31, 2023(1)	27.1
Amount paid during the three months ended March 31, 2023	(6.4)
Accrued restructuring costs as of March 31, 2023	$	20.7

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(1)The three months ended March 31, 2024 and March 31, 2023 excludes $0.8 million and $2.3 million, respectively, of equity-based compensation expense associated with our restructuring plans which was recorded within additional paid-in capital.

During the three months ended March 31, 2024, we also recognized $5.8 million of expense related to the abandonment of certain operating leases as discussed in Note 11. During the three months ended March 31, 2023, we recognized a $21.0 million charge in connection with the planned disposition of certain assets and liabilities of our hosting business within our Core segment which occurred on June 30, 2023.