| Item 2.05 | Costs Associated with Exit or Disposal Activities |
In September 2020, Clear Channel Outdoor Holdings, Inc. (the “Company”) committed to a restructuring plan for the Company’s international division to reduce headcount in Europe and Latin America. The Company previously disclosed an estimate of total charges for the restructuring plan in the range of approximately $21 million to $24 million and annualized pre-tax cost savings in excess of $20 million. The Latin America portion of the plan included charges of $0.5 million and was completed as of December 31, 2020. As of December 31, 2020, the Company had incurred approximately $8.9 million in charges related to the international restructuring plan.
On April 6, 2021, the Company revised the international restructuring plan to reflect delays in implementing the Europe portion of the plan and additional headcount reductions in Europe. As revised, the Company estimates that total charges for the Europe portion of the international restructuring plan, which includes charges already incurred, will be in a range of approximately $51 million to $56 million, all of which is expected to result in cash expenditures. It is anticipated that the international restructuring plan will be substantially complete by the end of the first quarter of 2023. The restructuring charges will consist primarily of termination benefits (including severance) and other associated costs. As revised, the Company expects the Europe portion of the international restructuring plan to result in pre-tax annual cost savings in excess of $28 million.
The restructuring charges described above are preliminary estimates and actual amounts may be materially different from these estimates. There is no guarantee that the Company will achieve the cost savings that it expects. The Company may also incur additional charges or future cash expenditures not currently contemplated due to events that may occur as a result of, or that are associated with, the international restructuring plan or related activities to address the impact of the COVID-19 pandemic on the Company’s business.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this Current Report on Form 8-K constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. Any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about the Company’s restructuring and cost savings initiatives, expected restructuring charges and anticipated cost savings, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Risks and uncertainties include the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
