Subsequent to the Beacon Acquisition, the Company developed a restructuring plan to streamline and simplify the organization, improve efficiency and reduce costs. As a result of the restructuring plan, the Company recorded restructuring charges comprised of severance and employee-related costs associated with corporate workforce optimization, stock-based compensation charges associated with impacted employees, and lease abandonment costs. These charges are reflected in selling, general and administrative expenses on the condensed consolidated statements of operations. The severance and employee-related costs were recorded in accrued expenses as payroll and employee benefit costs, while the stock-based compensation charge was reflected as an adjustment to common stock and additional paid-in capital on the condensed consolidated balance sheets. The severance and employee-related restructuring charge liability is expected to be substantially paid by September 2026.

The following table presents severance and employee-related costs and lease abandonment costs recognized in selling, general and administrative expenses on the condensed consolidated statements of operations during the three and six months ended June 30, 2026 and 2025:


(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Severance and employee-related costs	$	3	$	35	$	9	$	35
Lease abandonment costs	5		—		15		—
Total restructuring charges	$	8	$	35	$	24	$	35

During the three and six months ended June 30, 2025, the Company recognized a $38 million stock-based compensation charge associated with employees impacted by the Company’s restructuring plan. During the six months ended June 30, 2026, the Company recognized a $1 million stock-based compensation charge associated with impacted employees. During the three months ended June 30, 2026, stock-based compensation charges associated with impacted employees were nominal.


(in millions)	Severance and Employee-related Costs		Lease Abandonment Costs
Restructuring charge liability as of December 31, 2025	$	26	$	—
Restructuring charges	9		15
Payments	(26)		(4)
Non-cash settlement	—		(11)
Restructuring charge liability as of June 30, 2026	$	9	$	—

Severance and employee-related costs consist primarily of salary continuation benefits, prorated annual incentive compensation, continuation of health care benefits, and outplacement services. Severance and employee-related benefits are determined pursuant to the Company’s written severance plans and are recognized when the benefits are determined to be probable of being paid and are reasonably estimable.

Lease abandonment costs primarily represent the write-off of the remaining carrying value of operating lease right-of-use (“ROU”) assets for branch facilities that were abandoned in connection with the Company's restructuring plan. These lease abandonment charges are recognized as of the cease-use date. Other exit-related costs, including costs to close branch facilities, are recognized as incurred.