|6 Months Ended|
Jun. 30, 2022
|Subsequent Events [Abstract]|
Note 21. Subsequent Events
On July 7, 2022, the Company's Board of Directors approved a reorganization plan (the "Reorganization") designed to consolidate the Company’s national footprint, streamline legacy leadership, and centralize core business functions following the completion of 13 acquisitions by Fathom since 2019. Pursuant to the Reorganization, the Company intends to:
Consolidate its existing facility in Oakland, CA into Fathom headquarters in Hartland, WI, improving utilization and reducing costs;
Establish a Fathom technology center in the Bay Area that will focus on new and emerging technologies, specifically in the additive market; and
Consolidate leadership and other roles through a net workforce reduction of approximately 6%, create an accounting shared service organization to streamline company-wide processes and create economies of scale while pursuing additional shared-service systems in other administrative functions.
The approved plan is expected to achieve approximately $5.5 million in net pre-tax annualized cost savings upon completion. The savings for the current fiscal year are expected to be limited as the plan is implemented over the remainder of 2022 and into 2023. Additionally, the Company expects to incur pre-tax restructuring charges related to these activities totaling approximately $2.0 million, consisting of approximately $0.8 million in severance and other employee-related costs, $0.5 million in fixed asset and facility related write-down expenses, and $0.8 in other associated moving and relocation costs. The Company expects to incur approximately $0.9 million of the total restructuring charges in the third quarter of 2022, with the remaining charges to be incurred throughout the remainder of the restructuring process. The total cash expenditures associated with the plan are expected to be $1.7 million.
The Company anticipates that the initiative will be substantially complete by the end of the second quarter of 2023.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef