TransUnion

10. Restructuring

On November 12, 2023, our Board of Directors (“Board”) approved a transformation plan to optimize our operating model and continue to advance our technology. The transformation plan includes an operating model optimization program that transitioned certain job responsibilities to global capability centers and reduced our facility footprint. When we announced the transformation plan, the Company expected to record pre-tax expenses associated with the operating model optimization program of approximately $155.0 million from the fourth quarter of 2023 through the end of 2025, consisting of approximately $110.0 million of employee separation expenses and $45.0 million of facility exit expenses. We incurred a total of $149.0 million in connection with our operating model optimization program.

In 2024, as part of the transformation plan, the Company entered into an agreement to terminate a facility lease. The Company accounted for the agreement as a modification to the existing lease. The termination of the lease resulted in the payment of a $30.0 million early termination penalty during the year ended December 31, 2024. The Company recognized a loss on early termination of the lease of $40.5 million, which includes expense of $12.4 million principally associated with leasehold improvements in connection with terminating the lease.

The following table summarizes the expenses recorded for each respective period:

The following table summarizes the changes in the accrued restructuring during the years ended December 31, 2025 and 2024, which are included in other current liabilities on the Consolidated Balance Sheets.

All restructuring expenses have been recorded in the Corporate unit, as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance.