Item 2.05. Costs Associated with Exit or Disposal Activities.

As previously disclosed in the Original 8-K, on November 4, 2022, the Board of Directors of the Company approved a plan to restructure its workforce and reduce expenses based on the Company's updated business model.

The Company is adding estimates of the types of costs and range of estimates of costs expected to be incurred as a result of the restructuring plan. The Company expects it will incur approximately $65 million to $90 million of pre-tax restructuring charges comprised of:



•$29 million to $37 million of employee-related costs, including severance,
retention and other related costs;
•$11 million to $18 million of software and facility consolidation costs,
including property, equipment, capitalized software and lease right-of-use asset
impairments; and
•$25 million to $35 million of contract termination and other costs.

Of the total amounts above, the estimated cash expenditures from the restructuring will be in the range of approximately $54 million to $72 million. The Company expects the restructuring activities to be substantially completed by the fourth quarter of 2023.

The Company's Annual Report to Shareholders and its reports on Forms 10-K, 10-Q, and 8-K, and other publicly available information should be consulted for other important information about the Company.

Forward-Looking Statements

Statements made in this Form 8-K that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as "anticipate," "expect," "plan," "believe," "intend," "project," "forecast," "estimates," "projections," "outlook," and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations with respect to Bright Health Group, Inc. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include, among others: the number of employee terminations; factors related to contracts, such as early termination costs and the timing and amount of sublease income and other related expenses; ongoing negotiations with vendors; changes in management's assumptions; our ability to accurately estimate and effectively manage the costs relating to changes in our businesses offerings and models; unexpected delays, increased costs, regulatory restrictions; and the other factors set forth under the heading "Risk Factors" in the Company's reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.

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