Restructuring, Asset Impairments and Other Charges, Net

9 Months Ended

Sep. 27, 2024

Restructuring Charges [Abstract]

Restructuring, Asset Impairments and Other Charges, Net

Note 4: Restructuring, Asset Impairments and Other Charges, Net

Details of restructuring, asset impairments and other charges, net are as follows (in millions):        

	Restructuring		Asset Impairments		Other Charges (2)		Total
Quarter ended September 27, 2024
2024 Business Realignment	$	17.6	$	—	$	10.7	$	28.3
Other	(0.9)		—		1.7		0.8
Total	$	16.7	$	—	$	12.4	$	29.1
	Restructuring		Asset Impairments(1)		Other Charges		Total
Nine months ended September 27, 2024
2024 Business Realignment	$	70.1	$	15.7	$	13.8	$	99.6
Other	0.3		—		3.1		3.4
Total	$	70.4	$	15.7	$	16.9	$	103.0

(1) Asset impairment charges primarily related to property, plant and equipment.

(2) Other charges primarily related to equipment movement costs and accelerated amortization of ROU assets for certain leases.

A summary of changes in the accrued restructuring balance was as follows (in millions):

	As of						As of
	December 31, 2023		Charges		Usage		September 27, 2024
Accrued restructuring	$	17.9	$	70.4	$	(17.8)	$	70.5

2024 Business Realignment

During the second quarter of 2024, to further align with the "Fab Right" manufacturing strategy and consolidate its global footprint, the Company announced a restructuring plan that impacted approximately 1,300 employees. Approximately 1,100 employees were notified of their employment termination and around 200 additional employees were relocated to another onsemi site. The Company continues to evaluate employee positions and locations for potential operating improvements and efficiencies.

In connection with the actions announced during the second quarter, the Company expects to incur severance costs, related benefit expenses and other ancillary charges totaling approximately $72 million, of which approximately $70 million was recognized during the nine months ended September 27, 2024. Certain of the employees notified of their employment termination are required to render future service beyond a minimum retention period in order to receive severance benefits, and the related expense will be recognized ratably over the respective service periods, substantially all of which is expected to be recognized during the remainder of 2024.

Of the aggregate expenses relating to the actions announced so far in 2024, the Company paid approximately $7 million to approximately 500 terminated employees and had approximately $63 million accrued as of September 27, 2024. The remaining employees subject to this realignment are expected to be relocated or terminated and substantially all applicable severance and related benefit payments are expected to be paid over the next 12 months.