Restructuring Activities

12 Months Ended

Mar. 31, 2023

Restructuring Activities [Abstract]

Restructuring Activities

Note 6:  Restructuring Activities

During fiscal 2023, restructuring and repositioning expenses primarily consisted of severance-related expenses for targeted headcount reductions in each the Climate Solutions and Performance Technologies segments and supported the Company’s objective of reducing operational and SG&A cost structures. In addition, the Performance Technologies and Climate Solutions segments incurred equipment transfer costs in Europe and closure costs related to a previously-leased facility in the U.S., respectively.

During fiscal 2022,  the Company committed to restructuring actions intended to reduce SG&A and operational expenses, particularly within the Performance Technologies segment.  During fiscal 2022, the Company recorded $22.1 million of severance expenses, of which $20.3 million were recorded in the Performance Technologies segment and primarily related to targeted headcount reductions in Europe.  In addition, the Company implemented targeted headcount reductions in the Climate Solutions segment.  Also in fiscal 2022, the Company incurred equipment transfer costs within the Performance Technologies segment.

During fiscal 2021, restructuring actions consisted primarily of targeted headcount reductions and plant consolidation activities.  The headcount reductions were primarily in Europe and in the Americas within the Performance Technologies segment and supported the Company’s objective of reducing operational and SG&A cost structures.  During fiscal 2021, the Company transferred production from its manufacturing facility in Zhongshan, China to another Climate Solutions segment manufacturing facility in China.  As a result of this plant consolidation, the Company recorded $3.7 million of severance expenses during fiscal 2021.  Other plant consolidation activities in fiscal 2021 included transferring product lines to the Company’s Climate Solutions manufacturing facility in Mexico.

Restructuring and repositioning expenses were as follows:

	Years ended March 31,
	2023		2022		2021
Employee severance and related benefits	$	3.5	$	22.1	$	11.7
Other restructuring and repositioning expenses		1.5		2.0		1.7
Total	$	5.0	$	24.1	$	13.4

Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements.  Changes in accrued severance were as follows:

	Years ended March 31,
	2023			2022
Beginning balance	$	20.2		$	4.0
Additions		3.5			22.1
Payments		(12.4	)		(5.7	)
Reclassified from held for sale		-			0.4
Effect of exchange rate changes		(0.7	)		(0.6	)
Ending balance	$	10.6		$	20.2

During fiscal 2022 and 2021, the Company recorded $56.0 million of a net asset impairment reversal and $166.8 million of impairment charges, respectively, within its Performance Technologies segment.  See Note 2 for additional information.

Also during fiscal 2022, the Company recorded an impairment charge of $0.3 million to reduce the carrying value of a previously closed Climate Solutions facility to its estimated fair value, less costs to sell.