RESTRUCTURING AND EXIT ACTIVITIES

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

In 2021, we began a strategic initiative to consolidate certain manufacturing and warehousing facilities within Europe and North America, which also includes opening a new manufacturing and warehousing facility in North America. We anticipate that these actions will both expand our production capacity and allow us to better manage our inventory, supply chain and workforce. We expect to incur approximately $153.0 million of total expenses related to this project, and have already charged $138.0 million over the life of the project, $18.4 million of which were charged during the three months ended March 31, 2023. Costs incurred in 2023 of $18.1 million of non-recurring other costs related to facilities consolidations are reflected in Cost of sales and $0.3 million are reflected in Restructuring and exit costs. Our remaining costs for this project are approximately $15.2 million at March 31, 2023.

Cost estimates for this project have been impacted by an inflationary macro environment with constraints around materials, freight and labor. Extraordinary short-term measures were taken to minimize disruption to customers. These measures include lengthening warehouse leases, temporarily setting up additional warehouses, paying higher freight costs during warehouse transitions and paying carriers to guarantee delivery.

We also exited certain businesses in 2021 that leased equipment to customers under sales-type leases, as we further refine our business model and our strategy of selling solutions to customers.

The following table details our restructuring and exit costs as reflected in the Condensed Consolidated Statements of Operations:


(in millions)	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Recovery of lease receivables	$	(0.4)	$	(1.5)
Facilities	1.5		8.3
Employee termination benefits	(0.6)		1.8
Other	—		1.2
Total	$	0.5	$	9.8

The following table provides the details for the restructuring and exit cost liabilities:


(in millions)	Provision for Lease Receivables		Facilities		Employee Termination Benefits and Other		Total
Balance as of December 31, 2022	$	13.4	$	—	$	28.0	$	41.4
Accrual and accrual adjustments	(0.4)		1.5		(0.6)		0.5
Cash payments during period	—		(0.4)		(4.7)		(5.1)
Write-offs	—		(1.1)		—		(1.1)
Balance as of March 31, 2023	$	13.0	$	—	$	22.7	$	35.7

The reserve for the lease receivable contracts, net, is included in Other receivables and the liability for employee termination benefits is included in Accrued restructuring costs, respectively, on the Condensed Consolidated Balance Sheet at March 31, 2023. We anticipate paying the employee termination benefits of $22.7 million in the restructuring accrual within the next twelve months.

Restructuring and exit costs by segment were as follows:


(in millions)	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Institutional	$	2.1	$	9.6
Food & Beverage	0.9		0.4
Corporate	(2.5)		(0.2)
Total	$	0.5	$	9.8