Exit and Realignment Costs

12 Months Ended

Dec. 31, 2022

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, 2022, 2021 and 2020 were as follows:

Year ended December 31,	2022		2021		2020
Products & Healthcare Services	$	6,414	$	28,760	$	25,622
Patient Direct	483		2,349		310
Total exit and realignment charges	$	6,897	$	31,109	$	25,932

The following table summarizes the activity related to exit and realignment cost accruals through December 31, 2022:        

	Total
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
Provision for exit and realignment activities:
Severance	2,018
Other	4,147
Cash payments	(13,502)
Accrued exit and realignment charges, December 31, 2022	$	969

In addition to the exit and realignment accruals in the preceding table, we also incurred $0.7 million of costs that were expensed as incurred for the year ended December 31, 2022, which related to an increase in reserves associated with certain retained assets of Fusion5. 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 disposed assets and $2.0 million in other asset charges.

Acquisition-related and exit and realignment charges presented in our consolidated statements of operations includes acquisition-related charges of $48.1 million, $3.0 million and $11.8 million for the years ended December 31, 2022, 2021 and 2020. Acquisition-related charges in 2022 and 2021 consisted primarily of costs related to the Apria transaction. Acquisition-related charges in 2020 consisted primarily of transition costs for the Halyard acquisition.