Annual report pursuant to Section 13 and 15(d)

Restructuring

v3.22.4
Restructuring
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring
5.
Restructuring

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.

This 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.

Restructuring costs incurred for the year ended December 31, 2022 were $5.7 million and cumulative restructuring costs incurred since the inception of the program were $30.9 million as of December 31, 2022.

The table below presents the restructuring expense incurred:

 

 

Year Ended December 31,

 

 

 

2022

 

2021

 

Compensation and benefits

 

$

725

 

$

9,934

 

Occupancy and other costs(1)

 

 

4,992

 

 

4,446

 

Total

 

$

5,717

 

$

14,380

 

(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:

 

 

 

Compensation and
Benefits

 

 

Occupancy and Other Costs

 

 

Total

 

Balance at December 31, 2020

 

$

7,049

 

 

$

 

 

$

7,049

 

Accrued costs

 

 

9,934

 

 

 

4,446

 

 

 

14,380

 

Payments

 

 

(16,576

)

 

 

(4,446

)

 

 

(21,022

)

Balance at December 31, 2021

 

$

407

 

 

$

 

 

$

407

 

Accrued costs

 

 

725

 

 

 

4,992

 

 

 

5,717

 

Payments

 

 

(982

)

 

 

(4,992

)

 

 

(5,974

)

Balance at December 31, 2022

 

$

150

 

 

$

 

 

$

150