Annual report pursuant to Section 13 and 15(d)

Restructuring and Other Termination Benefits

v3.22.4
Restructuring and Other Termination Benefits
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Other Termination Benefits
7.    Restructuring and Other Termination Benefits

In the third and fourth quarter of 2022, the Company initiated two separate restructuring plans for cost-reduction actions including global workforce reductions, facility exit costs and contract termination costs. The following costs represent the result of these plans along with other non-recurring termination costs incurred during the year ended December 31, 2022:
2022
$’000
Special termination benefits 4,464 
Contractual termination benefits 4,268 
Severance benefits 1,609 
Non-cash facility exit costs for operating lease right-of-use asset impairment 4,247 
Contract termination costs 760 
Total restructuring and other termination costs associated with FY22 restructuring plans 15,348 
Other contractual termination benefits 4,791 
Total restructuring and other termination costs 20,139 
Less: Non-cash costs (4,247)
Less: Payment of restructuring and other termination costs in FY 2022 (10,821)
Remaining accrual for restructuring and other termination costs 5,071 

Of the total $15.3 million restructuring and other termination costs incurred as a result of our two restructuring plans initiated during the year ended December 31, 2022, $4.2 million relates to impairment of our right-of-use assets within Property, plant and equipment on the Consolidated Balance Sheets and recognized within Impairment expense within the Consolidated Statement of Operations and Other Comprehensive Loss. All other costs are recognized within Selling, general & administrative expenses in the Consolidated Statements of Operations and Other Comprehensive Loss and are associated with our Healthcare services reportable segment.

$5.1 million of the restructuring and other termination benefits incurred during the year remain unpaid as of December 31, 2022. Of this, $4.8 million relates to a minimum level of compensation, based in part on the Company’s stock price, for a
prior senior (non-Director) employee under their employment agreement and included in the Due to related parties account on the Consolidated Balance Sheets. The remaining $0.3 million accrual is recognized within the Accruals and other liabilities amount on the Consolidated Balance Sheets.