Exit and Realignment Costs, Net

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Exit and Realignment Costs

Note 4—Exit and Realignment Costs, Net

We incur exit and realignment and other charges associated with optimizing our operations which includes the consolidation of certain facilities, IT strategic initiatives and other strategic actions. These charges include professional fees, severance and other costs to streamline functions and processes. These costs are not normal, cash operating expenses necessary for the Company to operate its business on an ongoing basis and are excluded from our segments’ operating income.

Exit and realignment charges, net were $31 million and $27 million for the three months ended March 31, 2025 and 2024.

These charges were primarily related to strategic initiatives and operational improvements to increase net revenue and lower costs as well as a provision to accounts receivable related to our Fusion5 business which is in the process of being wound down. In addition, the gain on the sale of our corporate home office in the amount of $7.4 million was included in exit and realignment charges, net for the three months ended March 31, 2024.We expect to incur material future costs relating to certain exit and realignment actions, which remain underway that we are not able to reasonably estimate.

The following table summarizes the activity related to exit and realignment cost accruals, which are classified as other current liabilities in our condensed consolidated balance sheets, through March 31, 2025 and 2024:

	Total
Accrued exit and realignment costs, December 31, 2024	$	14,099
Provision for exit and realignment activities:
Severance		3,142
Professional fees		15,876
IT strategic initiatives		304
Other		3,558
Cash payments		(17,353)
Accrued exit and realignment costs, March 31, 2025	$	19,626
Accrued exit and realignment costs, December 31, 2023	$	20,047
Provision for exit and realignment activities:
Severance		184
Professional fees		25,625
Other		2,493
Cash payments		(11,728)
Accrued exit and realignment costs, March 31, 2024	$	36,621

In addition to the exit and realignment accruals in the preceding table, we also incurred $8.3 million of costs that were expensed as incurred for the three months ended March 31, 2025, which primarily related to wind-down costs

of Fusion5. For the three months ended March 31, 2024, the table above excludes the $7.4 million gain associated with the sale of our corporate headquarters, we also incurred $6.5 million of costs that were expensed as incurred for the three months ended March 31, 2024, which primarily related to accelerated depreciation of certain assets held in our Products & Healthcare Services segment.