Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER CHARGES

Restructuring

In the fourth quarter of 2021, the Company completed the execution of a multi-year restructuring and transformation program called DN Now. On a cumulative basis, $218.9 of expenses were incurred through December 31, 2021. These costs consisted primarily of severance charges, costs of personnel transitioning out of the organization, and consulting fees paid to third-party organizations who assisted with our transition to a shared service model.

On May 10, 2022, the Company announced a new initiative to streamline operations, drive efficiencies and digitize processes, targeting annualized cost savings of more than $150.0 by the end of 2023. During both the three and six month periods ended June 30, 2022, the Company incurred $78.3 of restructuring and transformation costs. The most significant of these costs was $54.9 that was accrued for future severance payments under an ongoing severance benefit program. Consistent with DN Now, the remainder of the expenses incurred primarily relate to transitioning personnel and consultants.

In connection with the latest restructuring initiative, several facilities have been identified for closure, which resulted in a $5.4 impairment of right-of-use assets and related leasehold improvements and furniture and fixtures recorded during the three months ended June 30, 2022.

The following table summarizes the impact of the Company’s restructuring and transformation charges on the consolidated statements of operations:

	Three months ended				Six months ended
	June 30				June 30
	2022		2021		2022		2021
Cost of sales – services	$	4.4	$	10.1	$	4.4	$	10.1
Cost of sales – products	8.7		1.1		8.7		1.6
Selling and administrative expense	57.9		6.5		57.9		11.7
Research, development and engineering expense	7.3		(0.6)		7.3		(0.3)
Total	$	78.3	$	17.1	$	78.3	$	23.1

The following table summarizes the Company’s severance accrual balance and related activity:

	2022		2021
Beginning balance as of January 1	$	35.3	$	62.9
Severance Accruals	54.9		10.3
Payouts/Settlements	(16.0)		(18.5)
Other	—		(2.8)
Ending balance as of June 30	$	74.2	$	51.9