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Restructuring and Severance
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Severance

15. Restructuring and Severance

Liabilities have been established for employee separations. A summary of activity in the restructuring and severance liability is shown below:

 

 

Successor

 

(dollars in millions)

 

Employee Separation

 

Balance as of September 8, 2021

 

$

0.1

 

Charges

 

 

0.6

 

Utilizations

 

 

(0.5

)

Balance as of December 31, 2021

 

 

0.2

 

Charges

 

 

2.0

 

Utilizations

 

 

(2.2

)

Balance as of December 31, 2022

 

 

—

 

Charges

 

 

13.8

 

Utilizations

 

 

(3.3

)

Balance as of December 31, 2023

 

$

10.5

 

 

 

 

 

 

 

 

 

 

 

Predecessor

 

(dollars in millions)

 

Employee Separation

 

Balance as of December 31, 2020

 

$

4.5

 

Charges

 

 

1.2

 

Utilizations

 

 

(5.6

)

Balance as of September 7, 2021

 

$

0.1

 

Restructuring and severance charges recorded in 2023 in the Network segment and for certain Corporate employees are related to a severance program as the Company continues to reduce costs and identify efficiencies that can be achieved by further integrating operations between Cincinnati and Hawaii. In the fourth quarter of 2023, severance charges of $7.3 million were recorded related to a voluntary severance program ("VSP") and severance charges of $3.5 million were recorded related to involuntary severance charges.

Restructuring and severance charges recorded in the IT Services and Hardware segment in 2023, 2022 and the Successor and Predecessor periods in 2021 are associated with initiatives to reduce and contain costs.

Restructuring and severance charge reversals recorded in the Network segment in the Predecessor period of 2021 are due to employees that transitioned to new positions in the Company and were previously included in the VSP offered in 2020.

A summary of restructuring activity by business segment is presented below:

 

 

 

Successor

 

(dollars in millions)

 

Network

 

 

IT Services and Hardware

 

 

Corporate

 

 

Total

 

Balance as of September 8, 2021

 

$

0.1

 

 

$

—

 

 

$

—

 

 

$

0.1

 

Charges

 

 

—

 

 

 

0.6

 

 

 

—

 

 

 

0.6

 

Utilizations

 

 

—

 

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Balance as of December 31, 2021

 

 

0.1

 

 

 

0.1

 

 

 

—

 

 

 

0.2

 

Charges

 

 

—

 

 

 

2.0

 

 

 

—

 

 

 

2.0

 

Utilizations

 

 

(0.1

)

 

 

(2.1

)

 

 

—

 

 

 

(2.2

)

Balance as of December 31, 2022

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Charges

 

 

10.3

 

 

 

3.0

 

 

 

0.5

 

 

 

13.8

 

Utilizations

 

 

(0.6

)

 

 

(2.7

)

 

 

—

 

 

 

(3.3

)

Balance as of December 31, 2023

 

$

9.7

 

 

$

0.3

 

 

$

0.5

 

 

$

10.5

 

 

 

 

 

 

 

Predecessor

 

(dollars in millions)

 

Network

 

 

IT Services and Hardware

 

 

Corporate

 

 

Total

 

Balance as of December 31, 2020

 

$

4.4

 

 

$

—

 

 

$

0.1

 

 

$

4.5

 

Charges

 

 

(0.5

)

 

 

1.7

 

 

 

—

 

 

 

1.2

 

Utilizations

 

 

(3.8

)

 

 

(1.7

)

 

 

(0.1

)

 

 

(5.6

)

Balance as of September 7, 2021

 

$

0.1

 

 

$

—

 

 

$

—

 

 

$

0.1

 

At December 31, 2023, $10.5 million of the restructuring liabilities were included in “Other current liabilities." There were no restructuring liabilities as of December 31, 2022.