Restructuring

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

In 2020, the company initiated a strategic evaluation (the “Initiative”) focusing on four key areas of our expense base: our organizational model, our real estate footprint, management of third party spend and technology and operations efficiency.

Restructuring expenses related to this initiative were $30.0 million for the three months ended March 31, 2021 (three months ended March 31, 2020: none). Restructuring expenses are recorded to transaction, integration and restructuring expenses on the Condensed Consolidated Statements of Income.

The company estimates $100 million to $125 million of remaining restructuring expenses related to this initiative through the end of 2022, of which approximately 50% will be employee compensation costs with the remainder comprised of property, office and technology costs and general and administrative costs. A substantial portion of these expenses will result in future cash expenditures.

The following table shows the rollforward of the restructuring liability and the total restructuring charges as of and for the period ending March 31, 2021 and December 31, 2020. The company recorded the liability to accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets.


$ in millions	Employee Compensation	Other Expenses	Total
Balance as of July 1, 2020	—	—	—
Accrued charges	85.0	9.1	94.1
Payments	(40.5)	(9.1)	(49.6)
Balance as of December 31, 2020	44.5	—	44.5
Accrued charges	19.8	4.1	23.9
Payments	(40.2)	(1.1)	(41.3)
Balance as of March 31, 2021	24.1	3.0	27.1
Non-cash charges (1)
Six months ended December 31, 2020	19.5	5.4	24.9
Three months ended March 31, 2021	4.8	1.3	6.1
Total non-cash charges	24.3	6.7	31.0
Cumulative charges incurred through March 31, 2021	129.1	19.9	149.0

(1) Non-cash charges include stock-based compensation, accelerated depreciation of certain assets and location strategy costs.