Exit and Realignment Costs

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Exit and Realignment Costs

Exit and Realignment Costs

We periodically incur exit and realignment and other charges associated with optimizing our operations which includes the consolidation of certain distribution centers, warehouses, our client engagement center and IT restructuring charges. These charges also include costs associated with our strategic organizational realignment which include reorganization costs, certain professional fees, costs to streamline administrative functions and processes, divestiture related costs, and other items.

Exit and realignment charges by segment for the years ended December 31, 2021, 2020 and 2019 were as follows:

Year ended December 31,	2021		2020		2019
Global Solutions	$	22,243	$	22,093	$	9,133
Global Products	8,866		3,839		5,264
Total exit and realignment charges	$	31,109	$	25,932	$	14,397

The following table summarizes the activity related to exit and realignment cost accruals through December 31, 2021:        

	Total
Accrued exit and realignment charges, December 31, 2018	$	7,477
Provision for exit and realignment activities:
Severance	6,008
Information system restructuring costs	2,531
Other	5,858
Cash payments	(13,712)
Accrued exit and realignment charges, December 31, 2019	8,162
Provision for exit and realignment activities:
Severance	5,623
Information system restructuring costs	2,119
Lease obligations	1,051
Other	6,519
Cash payments	(20,328)
Accrued exit and realignment charges, December 31, 2020	3,146
Provision for exit and realignment activities:
Severance	9,191
Information system restructuring costs	4,752
Lease obligations	440
Other	5,564
Cash payments	(14,787)
Accrued exit and realignment charges, December 31, 2021	$	8,306

In addition to the exit and realignment accruals in the preceding table, we also incurred $11.2 million of costs that were expensed as incurred for the year ended December 31, 2021, which primarily includes $9.6 million of wind-down costs related to Fusion5. We also incurred $10.6 million of costs that were expensed as incurred for the year ended December 31, 2020, including $4.9 million in impairment charges related to our client engagement center right-of-use asset, $3.7 million in loss on the sale of certain Fusion5 assets and $2.0 million in other asset charges.

We expect material additional costs in 2022 for activities that were initiated through December 31, 2021. Additionally, we anticipate new actions will be taken in 2022 that will incur costs similar to prior years.

Acquisition-related and exit and realignment charges presented in our consolidated statements of operations includes acquisition-related charges of $3.0 million, $11.8 million and $15.7 million for the years ended December 31, 2021, 2020 and 2019. Acquisition-related charges in 2021 consisted primarily of costs related to the pending Apria transaction. Acquisition-related charges in 2020 and 2019 consisted primarily of transition costs for the Halyard acquisition.