RESTRUCTURING

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

2021 Restructuring Program

On November 15, 2021, the Company announced the implementation of a restructuring program (the “2021 Restructuring Program”) intended to improve operational efficiency. The 2021 Restructuring Program includes, among other things, the elimination of full-time positions, termination of certain contracts, and asset impairments, primarily related to facilities consolidations. The Company currently expects to record in the aggregate approximately $174.0 million to $240.0 million in pre-tax restructuring and asset impairment charges associated with the 2021 Restructuring Program. Included in these pre-tax charges are approximately $87.0 million to $90.0 million related to employee severance arrangements, approximately $40.0 million to $75.0 million related to the impairment of ROU and other assets from the consolidation of facilities, approximately $20.0 million to $35.0 million in contract termination costs and approximately $27.0 million to $40.0 million related to the impairment of certain acquired intangible assets. See Note 9 for detailed information on intangible assets. The program is expected to be substantially completed over an estimated eighteen-month period.

Restructuring Charges

For the three and six months ended June 30, 2022, restructuring charges were comprised of the following (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2022		June 30, 2022
2021 Restructuring Program
Employee severance and related costs	$	8,796	$	20,377

ROU asset impairment	—		3,397
Other asset impairment	227		3,327
Total 2021 Restructuring Program charges	$	9,023	$	27,101

As of June 30, 2022, charges incurred within Restructuring expenses were $130.4 million since inception of the 2021 Restructuring Program.

The Company reviews for impairment of its long-lived assets, including ROU assets, whenever events or changes in circumstances indicate that the carrying amount of such assets may be impaired. Measurement of an impairment loss is based on the fair value of the asset compared to its carrying value. The fair value of the ROU assets is determined by utilizing the present value of the estimated future cash flows attributable to the assets.

In connection with the 2021 Restructuring Program the Company re-evaluated its real estate needs, resulting in a reduction of owned space and leased space, and the impairment of the associated ROU assets and property and equipment. During the six months ended June 30, 2022, these actions resulted in restructuring charges of $6.5 million, comprised of noncash charges of $3.4 million related to the impairment of operating lease ROU assets, and property and equipment of $3.1 million. Due to the actions taken above, the Company tested the operating lease ROU assets and certain property and equipment for recoverability by comparing the carrying value of the asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group. Based on the results of the recoverability test, the Company determined that the undiscounted cash flows of the asset groups were below the carrying values, indicating impairment. The Company then determined the fair value of the asset groups by utilizing the present value of the estimated future cash flows attributable to the assets.

Restructuring accruals

The activity in the Company’s restructuring accruals for the six months ended June 30, 2022 is summarized as follows (in thousands):


	2021 Restructuring Program
Balance at January 1, 2022	$	28,102
Employee severance and related costs	20,377

Payments	(40,939)
Balance at June 30, 2022	$	7,540