RESTRUCTURING COSTS

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

In November 2022, we initiated a company-wide involuntary workforce reduction as part of our efforts to improve efficiency and operating costs, and prioritize resources to further strengthen our pricing and underwriting foundation and the continued development of our embedded products, or November 2022 Restructuring. As a result of the November 2022 Restructuring, we incurred severance, benefits, share-based compensation, employee compensation expense dependent upon continuous employment for certain employees, and related employee costs, or Employee costs. In 2023, we expect to incur approximately $6.6 million of employee compensation expense, dependent upon continuous employment for certain employees, to be recognized ratably through the fourth quarter of 2023. We expect a cash expenditure related to these employee compensation costs in the first quarter of 2024. We do not expect to incur any material additional expenditures related to real estate exit costs or software costs in future periods.

In January 2022, we instituted an organizational realignment, which included an involuntary workforce reduction, due to inflation and loss cost trends and to further drive efficiency and increased focus on our strategic priorities, or January 2022 Restructuring. As a result of the January 2022 Restructuring, we incurred Employee costs and accelerated expense for software that no longer has economic benefit. Additionally, we incurred real estate exit costs related to certain floors of our corporate headquarters in Columbus, Ohio that we ceased using. To the extent we had no intent or ability to sublease the space, we accelerated the amortization of the related right-of-use assets, leasehold improvements and furniture and fixtures. For subleased space, we recognized sublease income as an offset to amortization of the right-of-use asset. As of December 31, 2022, we do not expect to incur any material additional expenditures in future periods related to the January 2022 Restructuring.

The following table displays restructuring costs recorded in general and administrative expenses on the consolidated statements of operations and comprehensive loss:


	Years Ended December 31,
	2022		2021		2020
Restructuring costs:	(dollars in millions)
Employee costs	$	15.5	$	—	$	—
Real estate exit costs	2.1		—		—
Software costs	1.0		—		—
Total restructuring costs	$	18.6	$	—	$	—

The following table displays a rollforward of the accrual for restructuring costs recorded in other liabilities on the consolidated balance sheets:


	Employee costs		Software costs		Total liability
Restructuring activity:	(dollars in millions)
Restructuring liability as of December 31, 2021	$	—	$	—	$	—
Expense incurred	10.2		1.0		11.2

Payments	(7.1)		(0.9)		(8.0)
Restructuring liability as of December 31, 2022	$	3.1	$	0.1	$	3.2