Restructuring and Long-Lived Asset Impairment (Tables)

12 Months Ended

Dec. 31, 2022

Restructuring and Long-Lived Asset Impairment

Schedule of expenses associated with the 2019 Strategic Shift

The following table details the costs incurred associated with the 2019 Strategic Shift (in thousands):


	Year Ended December 31,
	2022		2021		2020
Restructuring costs:
One-time termination benefits⁽¹⁾	$	—	$	—	$	231
Lease termination costs⁽²⁾		1,316		1,431		4,432
Incremental inventory reserve charges⁽³⁾		—		15,017		543
Other associated costs⁽⁴⁾		7,026		10,684		16,835
Total restructuring costs	$	8,342	$	27,132	$	22,041

(1)	These costs incurred in 2020 were primarily included in costs applicable to revenues – products, service and other in the consolidated statements of operations.

(2)	These costs were included in lease termination charges in the consolidated statements of operations. This reflects termination fees paid, net of any gain from derecognition of the related operating lease assets and liabilities.

(3)	These costs were included in costs applicable to revenue – products, service and other in the consolidated statements of operations.

(4)

Other associated costs primarily represent labor, lease, and other operating expenses incurred during the post-close wind-down period for the locations related to the 2019 Strategic Shift. For the year ended December 31, 2020, costs of approximately $0.4 million were included in costs applicable to revenue – products, service and other. For the years ended December 31, 2022, 2021 and 2020, costs of approximately $7.0 million, $10.7 million and $16.4 million, respectively, were included in selling, general, and administrative expenses in the consolidated statements of operations.

Schedule of changes in the restructuring accrual associated with the 2019 Strategic Shift

The following table details changes in the restructuring accrual associated with the 2019 Strategic Shift (in thousands):


	One-time		Lease		Other
	Termination		Termination		Associated
	Benefits		Costs⁽¹⁾		Costs		Total
Balance at June 30, 2019	$	—	$	—	$	—	$	—
Charged to expense		1,008		1,350		4,321		6,679
Paid or otherwise settled		(286)		(1,350)		(4,036)		(5,672)
Balance at December 31, 2019		722		—		285		1,007
Charged to expense		231		10,532		16,835		27,598
Paid or otherwise settled		(953)		(10,532)		(16,346)		(27,831)
Balance at December 31, 2020		—		—		774		774
Charged to expense		—		1,650		10,684		12,334
Paid or otherwise settled		—		(1,650)		(10,532)		(12,182)
Balance at December 31, 2021		—		—		926		926
Charged to expense		—		6,097		7,026		13,123
Paid or otherwise settled		—		(6,097)		(7,083)		(13,180)
Balance at December 31, 2022	$	—	$	—	$	869	$	869

(1)

Lease termination costs exclude the $1.3 million, $6.1 million and $0.2 million and $4.8 million of gains from the derecognition of the operating lease assets and liabilities relating to the terminated leases as part of the 2019 Strategic Shift for the six months ended December 31, 2019 and for the years ended December 31, 2020, 2021 and 2022, respectively.

Schedule of long-lived asset impairment charges by type of long-lived asset

The following table details long-lived asset impairment charges by type of long-lived asset (in thousands):


	Year Ended December 31,
	2022		2021		2020
Long-lived asset impairment charges:
Leasehold improvements	$	2,557	$	721	$	2,374
Furniture and equipment		61		196		2,588
Buildings		—		—		1,461
Operating lease right-of-use assets		1,613		2,127		5,930
Total long-lived asset impairment charges		4,231		3,044		12,353
Less: portion unrelated to 2019 Strategic Shift		(2,617)		(1,645)		(64)
2019 Strategic Shift long-lived asset impairment charges	$	1,614	$	1,399	$	12,289