Note O - Restructuring Activities

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note O — Restructuring Activities

Our management team continuously reviews and adjusts our cost structure and operating footprint, optimize our operations, and invest in improved technology.  During 2020, in an effort to right-size our operating footprint, we terminated leases in Wilkes Barre (PA) and Grand Prairie (TX) and exited our last direct mail facility in Jacksonville (FL).  We completed the migration of our fulfillment business from the Grand Prairie (TX) operations into a new 400,000 square foot facility in Kansas City (KS) in December 2020.  In the first quarter of 2021, we completed the migration of our Shawnee (KS) operations to Kansas City (KS).  The new Kansas City location is now our primary facility in the Midwest. In 2020, we also reduced the footprint of our Customer Care business by reducing our Austin (TX) office location by approximately 50,000 square feet in addition to exiting one of our two Manila offices as the business was operating effectively in a work-from-home environment. 

In connection with our cost-saving and restructuring initiatives, we incurred total restructuring charges of $27.6 million through the end of 2021.  We completed our restructuring in 2021, and did not incur any additional restructuring expenses in 2022.

For the year ended December 31, 2021, we recorded restructuring charges of $6.4 million.  The 2021 restructuring charges included $2.5 million of severance charges, $0.9 million in lease impairment expense and $3.0 million of facility related and other expenses. 

The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Consolidated Statement of Comprehensive Income.

In thousands	Year Ended December 31, 2021
Severance		2,482
Facility, asset impairment and other expense
Lease impairment and termination expense		868
Fixed Asset disposal and impairment charges		33
Facility and other expenses		2,976
Total facility, asset impairment and other expense		3,877
Total	$	6,359

The following table summarizes the changes in liabilities related to restructuring activities:

In thousands	Year Ended December 31, 2022
				Facility, asset impairment and other
	Severance			expense		Total
Beginning balance:	$	738		$	—	$	738
Additions		—			—		—
Payments and adjustment		(726	)		—		(726	)
Ending balance:	$	12		$	—	$	12

In connection with our cost-saving and restructuring initiatives, we incurred total restructuring charges of $27.6 million through the end of 2021.  For the years ended  December 31, 2021, 2020 and 2019, we recognized $6.4 million, $9.4 million and $11.8 million of restructuring expense, respectively.  We do not expect to incur additional restructuring charges after 2021.