Restructuring

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

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

of $200.2 of severance charges with the remainder related to 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.

In the second quarter of 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. Throughout 2022, the Company incurred $124.2 of restructuring and transformation costs. The most significant of these costs was $54.9 and $7.6, recorded in the second and fourth quarters of 2022, respectively, that was accrued for severance payments under an ongoing severance benefit program. Consistent with DN Now, other than severance, the remainder of the expenses incurred primarily relate to transitioning personnel and consultant fees in relation to the transformation process.

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 second

quarter of 2022. In connection with the organizational simplification and related portfolio optimization, $4.1 of German

capitalized software was impaired in the third quarter of 2022.

The following table summarizes the impact of the Company’s restructuring and transformation charges, excluding the aforementioned impairments, on the consolidated statements of operations for the years ended December 31:


	2022		2021		2020
Cost of sales - services	$	7.7	$	13.0	$	14.1
Cost of sales - products	13.1		2.4		8.2
Selling and administrative expense	94.4		13.1		52.9
Research, development and engineering expense	9.0		(0.3)		6.4
Total	$	124.2	$	28.2	$	81.6

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


Balance at January 1, 2020	$	42.6
Liabilities incurred	81.6
Liabilities paid/settled	(61.3)
Balance at December 31, 2020	$	62.9
Liabilities incurred	15.4
Liabilities paid/settled	(43.0)
Balance at December 31, 2021	$	35.3
Liabilities incurred	62.5
Liabilities paid/settled	(53.6)
Balance at December 31, 2022	$	44.2