Restructuring |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring |
Note 17 – Restructuring In the third quarter of 2023, the Company began a restructuring plan that involves exiting company-owned transition studios and other measures designed to reduce costs to achieve the Company’s long-term margin goals and focus on pure franchise operations. The plan was approved and initiated in the third quarter of 2023 and is expected to continue throughout 2023 and 2024. The Company expects to recognize additional restructuring charges throughout 2023 and 2024 totaling approximately $8,500 to $10,500, for accelerated right-of-use asset amortization related to company-owned transition studios with a cease use date in the fourth quarter of 2023 and other restructuring charges. During the three and nine months ended September 30, 2023, the Company recognized restructuring charges of $6,325, primarily for accelerated amortization of right-of-use assets, loss on sale or disposal of assets, and other restructuring charges. All charges were recorded as selling, general and administrative expenses and costs of product revenue in the condensed consolidated statements of operations. The components of the restructuring charges are as follows:
(1) These charges are recorded in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations. (2) Charges of $248 recorded in cost of product revenues and charges of $385 recorded in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations.
(3) Loss on sale or disposal of assets represents net losses on sales or disposal of studio assets primarily related to studio property and equipment. The following table provides the components of and changes in the Company’s restructuring charges, included in accounts payable on the condensed consolidated balance sheets:
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