Ryan Specialty Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

During 2020, the Company initiated a restructuring plan in conjunction with the All Risks Acquisition, to reduce costs and increase efficiencies. The restructuring plan was entered into expecting to generate annual savings of $25.0 million and to incur total restructuring costs in the range of $30.0 million to $35.0 million, with run-rate savings expected to be realized by June 30, 2023. The plan involved restructuring costs primarily consisting of employee termination benefits and retention costs. The restructuring plan also included charges for consolidating leased office space, as well as other professional fees. The cumulative restructuring costs incurred since the inception of the program totaled $30.9 million as of June 30, 2022. The plan was fully actioned as of June 30, 2022, with any remaining termination benefits and retention costs expected to be recognized by the end of the current year.

The table below presents the restructuring expense incurred during the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Compensation and benefits	$	546	$	2,162	$	704	$	8,351
Occupancy and other costs(1)		2,027		883		4,993		1,612
Total	$	2,573	$	3,045	$	5,697	$	9,963

(1)

Occupancy and other costs, which include non-cash impairments, are included within General and administrative expenses in the Consolidated Statements of Income

The table below presents a summary of changes in the restructuring liability from December 31, 2021 through June 30, 2022:


	Compensation and Benefits			Occupancy and Other Costs			Total
Balance as of December 31, 2021	$	407		$	—		$	407
Accrued costs		704			2,577			3,281
Payments		(794	)		(1,038	)		(1,832	)
Balance as of June 30, 2022	$	317		$	1,539		$	1,856