Restructuring Charges

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

2024 Plan

As part of our ongoing initiatives to accelerate value creation, at the end of the second quarter of 2024, we approved a worldwide cost reduction initiative (the "2024 Plan") to realize cost reductions and improve efficiencies. During the second quarter, we eliminated 367 positions and incurred pre-tax charges of $26 million and in July 2024, we eliminated an additional 184 positions and will record pre-tax charges of $8 million in connection with the 2024 Plan.

We anticipate incurring additional charges in future periods related to further workforce reductions contemplated by the 2024 Plan. We expect to complete these actions by the end of the first half of 2025.

2023 Plan

We completed the remaining actions under the 2023 Plan in the second quarter. During the second quarter, we eliminated 34 positions and incurred pre-tax charges of $6 million. Under this plan, we eliminated 1,049 positions and cumulative charges were $69 million.

Activity in our restructuring reserves was as follows:

	2024 Plan		2023 Plan		Total
Balance at January 1, 2024	$	—	$	26,128	$	26,128
Amounts charged to expense	25,537		10,621		36,158
Cash payments	—		(26,697)		(26,697)
Noncash activity	—		(875)		(875)
Balance at June 30, 2024	$	25,537	$	9,177	$	34,714
	2023 Plan		Prior Plan		Total
Balance at January 1, 2023	$	—	$	7,647	$	7,647
Amounts charged to expense	22,443		3,599		26,042
Cash payments	(1,637)		(11,246)		(12,883)
Noncash activity	(1,478)		—		(1,478)
Balance at June 30, 2023	$	19,328	$	—	$	19,328

Components of restructuring expense were as follows:

	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	2024 Plan		2023 Plan		Total		2023 Plan		Prior Plan		Total
Severance	$	25,537	$	6,020	$	31,557	$	20,965	$	—	$	20,965
Facilities and other	—		286		286		1,478		—		1,478
Total	$	25,537	$	6,306	$	31,843	$	22,443	$	—	$	22,443
	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	2024 Plan		2023 Plan		Total		2023 Plan		Prior Plan		Total
Severance	$	25,537	$	9,398	$	34,935	$	20,965	$	3,057	$	24,022
Facilities and other	—		1,223		1,223		1,478		542		2,020
Total	$	25,537	$	10,621	$	36,158	$	22,443	$	3,599	$	26,042