Exit and Realignment Costs

6 Months Ended

Jun. 30, 2023

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 facilities and IT restructuring charges. These charges also include costs associated with our Operating Model Realignment Program, which include professional fees, severance and other costs to streamline functions and processes.

Exit and realignment charges were $29.0 million and $1.2 million for the three months ended June 30, 2023 and 2022 and $44.6 million and $2.9 million for six months ended June 30, 2023 and 2022. These amounts are excluded from our segments operating income. We expect material additional costs in 2023 associated with the Operating Model Realignment Program and IT restructuring charges.

The following table summarizes the activity related to exit and realignment cost accruals through June 30, 2023 and 2022:

	Total
Accrued exit and realignment costs, December 31, 2022	$	969
Provision for exit and realignment activities:
Severance	4,127
Professional fees	9,012
Vendor contract and lease termination costs	1,824
Other	711
Cash payments	(5,546)
Accrued exit and realignment costs, March 31, 2023	11,097
Provision for exit and realignment activities:
Severance	505
Professional fees	22,953
Vendor contract and lease termination costs	1,707
Other	3,798
Cash payments	(20,196)
Accrued exit and realignment costs, June 30, 2023	$	19,864
Accrued exit and realignment costs, December 31, 2021	$	8,306
Provision for exit and realignment activities:
Severance	811
Other	871
Cash payments	(6,903)
Accrued exit and realignment costs, March 31, 2022	3,085
Provision for exit and realignment activities:
Severance	246
Other	968
Cash payments	(3,477)
Accrued exit and realignment costs, June 30, 2022	$	822