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Restructuring and Related charges
12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Related Charges

 

14.

Restructuring and Related Charges

 

2019 Restructuring Plan

 

During the first quarter of 2019, we began a reorganization primarily related to integrating the Nutrisystem business and streamlining our corporate and operations support (the "2019 Restructuring Plan"). The 2019 Restructuring Plan concluded during the first quarter of 2020.  For the years ended December 31, 2020 and 2019, we incurred restructuring charges from continuing operations of $0.5 million and $1.9 million, respectively, related to the 2019 Restructuring Plan.  To date, we have incurred restructuring charges from continuing operations of $2.4 million related to the 2019 Restructuring Plan. These expenses consist entirely of severance and other employee-related costs. 

 

2020 COVID Restructuring Plan

 

During the second quarter of 2020, we began a reorganization plan primarily related to eliminating certain compensation costs in response to the COVID-19 pandemic in order to preserve our liquidity and manage our cash flows (“2020 COVID Restructuring Plan”). The 2020 COVID Restructuring Plan was completed during the third quarter of 2020. To date and for the year ended December 31, 2020, we incurred restructuring charges from continuing operations of $0.8 million related to the 2020 COVID Restructuring Plan. These expenses consist entirely of severance and other employee-related costs.  The 2020 COVID Restructuring Plan is expected to result in total annualized savings at target performance of approximately $6.0 million.

 

2020 Restructuring Plan

 

During the third quarter of 2020, we began a reorganization plan primarily related to optimizing our business for growth and executing on our new strategy (“2020 Restructuring Plan”).  To date and for the year ended December 31, 2020, we incurred restructuring charges from continuing operations of $3.1 million related to the 2020 Restructuring Plan, which consisted entirely of severance and other employee-related costs.  Actions taken to date under the 2020 Restructuring Plan are expected to result in total annualized savings at target performance of approximately $6.7 million.

 

The following table shows the activity from continuing operations in accrued restructuring and related charges for the year ended December 31, 2020 related to the restructuring plans described above.  The activity set forth below consists entirely of severance and other employee-related costs that have been or will be settled in cash.  We also incurred $0.8 million of non-cash restructuring charges during 2020 related to share-based compensation.

 

(In thousands)

 

2019 Restructuring Plan

 

 

2020 COVID Restructuring Plan

 

 

2020 Restructuring Plan

 

 

Total

 

Accrued restructuring and related charges liability as of January 1, 2020

 

$

242

 

 

$

 

 

$

 

 

$

242

 

Restructuring charges

 

 

475

 

 

 

816

 

 

 

2,327

 

 

 

3,618

 

Payments

 

 

(606

)

 

 

(816

)

 

 

(514

)

 

 

(1,936

)

Accrued restructuring and related charges liability as of December 31, 2020

 

$

111

 

 

$

 

 

$

1,813

 

 

$

1,924