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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

9 Months Ended

Sep. 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. In its expanded form, the restructuring plan is expected to incur total restructuring costs of approximately $90.0 million through December 31, 2024 and to generate annual savings of approximately $50.0 million in 2025. The total expected costs of the plan include $50.0 million related to operations and technology optimization, $25.0 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 September 30, 2023		Nine Months Ended September 30, 2023
Operations and technology optimization	$	10,824	$	18,529
Compensation and benefits		5,109		6,709
Asset impairment and other termination costs		544		11,057
Total	$	16,477	$	36,295

For the three and nine months ended September 30, 2023, the Company recognized restructuring expenses of $11.6 million and $13.4 million, respectively, including contractor costs, in Compensation and benefits, and $4.9 million and $22.9 million, respectively, in General and administrative expense on the Consolidated Statements of Income (Loss).

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		22,953			6,709			11,057			40,719
Payments		(11,390	)		(4,128	)		(8,220	)		(23,738	)
Non-cash adjustments		—			—			(437	)		(437	)
Balance at September 30, 2023	$	11,563		$	2,581		$	2,400		$	16,544

As of September 30, 2023, $11.2 million of the restructuring liability was included in Accounts payable and accrued liabilities and $5.3 million was included in Current Accrued compensation on the Consolidated Balance Sheets.