Restructuring and Severance

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Severance

15.Restructuring and Severance

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

(dollars in millions)	Employee Separation			Contract Terminations			Total
Balance as of December 31, 2021	$	0.1		$	—		$	0.1
Charges		—			—			—
Utilizations		(0.1	)		—			(0.1	)
Balance as of December 31, 2022	$	—		$	—		$	—
Charges		10.8			—			10.8
Utilizations		(0.6	)		—			(0.6	)
Balance as of December 31, 2023	$	10.2		$	—		$	10.2
Charges		59.9			0.6			60.5
Utilizations		(29.9	)		(0.4	)		(30.3	)
Balance as of December 31, 2024	$	40.2		$	0.2		$	40.4

In the fourth quarter of 2024, management undertook a review of the business operations of the Company including departments supporting the operations and contrasted those with the Company's strategic priorities and requirements for 2025 and beyond. Based on that review, the Company's management approved a plan to centralize its management of certain functions and systems, deprioritize certain product offerings and cease sales and support for certain product lines.

The Company executed a restructuring plan consisting of an organizational restructuring to centralize the Company’s management, align resources with strategic product lines and reduce costs associated with certain functions (the “Organizational Restructuring”). Certain employees were offered enhanced severance benefits under the 2024 voluntary severance program ("2024 VSP"). The Organizational Restructuring has resulted in the elimination of certain positions and termination of employment for certain employees in the Network segment and the Corporate function. These charges were recorded in the fourth quarter of 2024 at the time management resolved to undertake the Organizational Restructuring and are expected to be paid in the first half of 2025. Severance charges of $54.2 million were recorded related to the 2024 VSP and $5.7 million were recorded related to an involuntary severance program in the twelve months ended December 31, 2024.

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 2023 voluntary severance program and severance charges of $3.5 million were recorded related to an involuntary severance program.

Contract termination costs consist of payments due to vendors to exit contractual agreements that will no longer be utilized as a result of the Company's decision to cease operations of an ancillary business as part of its ongoing integration. Contract termination costs in 2024 consisted of amounts due to vendors to terminate contractual agreements. Contract termination costs are expected to be paid out in the first quarter of 2025.

A summary of restructuring activity is presented below:

(dollars in millions)	Network			Corporate			Total
Balance as of December 31, 2021	$	0.1		$	—		$	0.1
Charges		—			—			—
Utilizations		(0.1	)		—			(0.1	)
Balance as of December 31, 2022	$	—		$	—		$	—
Charges		10.3			0.5			10.8
Utilizations		(0.6	)		—			(0.6	)
Balance as of December 31, 2023	$	9.7		$	0.5		$	10.2
Charges		59.3			1.2			60.5
Utilizations		(29.8	)		(0.5	)		(30.3	)
Balance as of December 31, 2024	$	39.2		$	1.2		$	40.4

At December 31, 2024 and 2023, $40.4 million and $10.2 million, respectively, are disclosed as "Accrued restructuring" on the Consolidated Balance Sheet as all amounts accrued are expected to be paid in 2025.