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, 2023

Restructuring and Related Activities [Abstract]

In February 2023, the Company initiated the ACCELERATE 2025 program that will enable continued growth, drive innovation, and deliver sustainable productivity improvements over the long term. The restructuring plan aims to reduce costs and increase efficiencies through a focus on optimizing the Company's operations and technology. The restructuring plan is expected to incur total restructuring costs of at least $65.0 million through December 31, 2024 and to generate annual savings of at least $35.0 million in 2025. The total expected costs of the plan include $35.0 million related to operations and technology optimization, $15.0 million related to employee compensation and benefits, and $15.0 million related to asset impairment and other termination costs. The table below presents the restructuring expense incurred in the period:


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Operations and technology optimization	$	6,271	$	7,705
Compensation and benefits		940		1,599
Asset impairment and other termination costs		9,928		10,514
Total	$	17,139	$	19,818

For the three and six months ended June 30, 2023, the Company recognized restructuring expenses of $1.1 million and $1.8 million, respectively, including contractor costs, in Compensation and benefits, and $16.0 million and $18.0 million, respectively, in General and administrative expense on the Consolidated Statements of Income.

The table below presents a summary of changes in the restructuring liability:


	Operations and Technology Optimization			Compensation and Benefits			Asset Impairment and Other Termination Costs			Total
Balance at January 1, 2023	$	—		$	—		$	—		$	—
Accrued costs		7,705			1,599			10,514			19,818
Payments		(2,040	)		(1,076	)		(4,477	)		(7,593	)
Non-cash adjustments		1,343			—			(437	)		906
Balance at June 30, 2023	$	7,008		$	523		$	5,600		$	13,131

As of June 30, 2023, $12.4 million of the restructuring liability was included in Accounts payable and accrued liabilities and $0.7 million was included in Current Accrued compensation on the Consolidated Balance Sheets.