RESTRUCTURING

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

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 fourth quarter of 2023, the Company completed the 2022 initiative that was announced in the second quarter of 2022. The focus was to streamline operations, drive efficiencies and digitize processes. The savings realized were in line with expectations. The most significant expense of the initiative related to severance payments, while the remainder of the expenses incurred primarily relate to transitioning personnel and consultant fees in relation to the transformation process

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:


	Successor		Predecessor
	Period from 08/12/2023 through 12/31/2023		Period from 01/01/2023 through 08/11/2023		Years ended December 31,
					2022		2021
Cost of sales - services	$	(1.4)	$	5.3	$	7.7	$	13.0
Cost of sales - products	(1.5)		0.8		13.1		2.4
Selling and administrative expense	25.4		29.4		94.4		13.1
Research, development and engineering expense	0.1		1.5		9.0		(0.3)
Loss on sale of assets, net	—		1.9		—		—
Total	$	22.6	$	38.9	$	124.2	$	28.2

As of August 11, 2023, management determined that the carrying value of the restructuring accrual approximated the fair value; therefore, no fair value adjustment for Fresh Start Accounting was recorded.

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


Balance at January 1, 2021 (Predecessor)	$	62.9
Liabilities incurred	15.4
Liabilities paid/settled	(43.0)
Balance at December 31, 2021 (Predecessor)	$	35.3
Liabilities incurred	62.5
Liabilities paid/settled	(53.6)
Balance at December 31, 2022 (Predecessor)	$	44.2
Liabilities incurred	6.8
Liabilities paid/settled	(37.0)
Other	0.4
Balance as of August 12, 2023 (Successor)	$	14.4
Liabilities incurred	5.3
Liabilities paid/settled	(9.4)

Balance at December 31, 2023 (Successor)	$	10.3