Restructuring, Asset Impairment, and Transition Expenses

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring, Asset Impairment, and Transition Expenses

14. Restructuring, Asset Impairment, and Transition Expenses

From time to time, the Company will initiate various restructuring programs and incur severance and other restructuring costs.

During 2017, the Company commenced a restructuring plan (“2017 Altra Plan”) as a result of the Company’s purchase of Stromag and to rationalize its global renewable energy business. The actions taken pursuant to the 2017 Altra Plan included reducing headcount, facility consolidations and the elimination of certain costs. In 2022 and 2021, the Company did not incur any costs as a result of the 2017 Altra Plan. In 2020, the Company incurred $0.5 million related to headcount reduction. The Company does not expect to incur any additional material costs as a result of the 2017 Altra Plan.

During 2019, the Company commenced a restructuring plan (“2019 Altra Plan”) to drive efficiencies, reduce the number of facilities and optimize its operating margin. The Company expects to incur an additional $1.0 - $2.0 million in restructuring expenses under the 2019 Altra Plan over the next two years, primarily related to headcount reductions and plant consolidations. For the year to date period ended December 31, 2022, the Company incurred expenses of $5.2 million comprised mainly of severance costs. For the year to date period ended December 31, 2021, the Company recorded approximately $2.0 million in expenses related to workforce reductions, $0.8 million in expenses related to facilities consolidation and relocation costs, and $0.2 million in other restructuring expense related charges. For the year to date period ended December 31, 2020, the Company recorded approximately $5.0 million in expenses related to workforce reductions, $0.6 million in expenses related to facilities consolidation and relocation costs, and $1.3 million in other restructuring expense related charges.

The following table is a reconciliation of the accrued restructuring costs between January 1, 2020 and December 31, 2022.

	2017 Altra Plan			2019 Altra Plan			Total All Plans
Balance at January 1, 2020	$	1.5		$	2.6		$	4.1
Restructuring expense incurred		0.5			6.9			7.4
Cash payments		(1.5	)		(7.7	)		(9.2	)
Balance at December 31, 2020		0.5			1.8			2.3
Restructuring expense incurred		—			3.0			3.0
Cash payments		(0.5	)		(4.3	)		(4.8	)
Balance at December 31, 2021		—			0.5			0.5
Restructuring expense incurred		—			5.2			5.2
Cash payments		—			(2.2	)		(2.2	)
Balance at December 31, 2022	$	—		$	3.5		$	3.5

The total accrued restructuring reserve as of December 31, 2022 relates to severance to be paid to former employees and facility consolidation and relocation costs under the 2019 Altra Plan and is recorded in accruals and other current liabilities on the accompanying consolidated balance sheet.

The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2022.

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	4.0	$	4.0
Automation & Specialty		—		1.2		1.2
Expense for the year ending December 31, 2022	$	—	$	5.2	$	5.2

The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2021.

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	1.8	$	1.8
Automation & Specialty		—		1.2		1.2
Expense for the year ending December 31, 2021	$	—	$	3.0	$	3.0

The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2020.

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	0.5	$	4.2	$	4.7
Automation & Specialty		—		2.7		2.7
Expense for the year ending December 31, 2020	$	0.5	$	6.9	$	7.4