Restructuring Charges and Asset Impairments

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments

In May 2023, we approved a worldwide restructuring plan (the 2023 Plan) designed to improve profitability and cash flow by reducing complexity, streamlining processes, and driving further operational efficiencies. This will be achieved through the elimination of 850-950 positions worldwide in part through further centralization and standardization of processes, including the expansion of our shared services activities, increased automation, and the consolidation or closure of select facilities in North America. Total charges are expected to be $60 million-$70 million, consisting of employee severance and facility consolidation costs. We expect to substantially complete these actions by the end of the first half of 2024.

Activity in our restructuring reserves was as follows:


	2023 Plan		Prior Plan		Total
Balance at January 1, 2023	$	—	$	7,647	$	7,647
Amounts charged to expense	39,021		3,599		42,620
Cash payments	(13,906)		(11,246)		(25,152)
Noncash activity	(8,049)		—		(8,049)
Balance at September 30, 2023	$	17,066	$	—	$	17,066

Balance at January 1, 2022	$	—	$	5,747	$	5,747
Amounts charged to expense	—		12,672		12,672
Cash payments	—		(11,761)		(11,761)
Noncash activity	—		(1,378)		(1,378)
Balance at September 30, 2022	$	—	$	5,280	$	5,280

Components of restructuring expense were as follows:


	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	2023 Plan		Prior Plan		Total		Prior Plan
Severance	$	10,007	$	—	$	10,007	$	2,846
Facilities and other	6,571		—		6,571		1,418
Total	$	16,578	$	—	$	16,578	$	4,264

	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
	2023 Plan		Prior Plan		Total		Prior Plan
Severance	$	30,972	$	3,057	$	34,029	$	9,223
Facilities and other	8,049		542		8,591		3,449
Total	$	39,021	$	3,599	$	42,620	$	12,672