Restructuring Activities

9 Months Ended

Dec. 31, 2023

Note 7: Restructuring Activities

During the first nine months of fiscal 2024, restructuring and repositioning expenses primarily consisted of equipment transfer costs and severance expenses in the Climate Solutions and Performance Technologies segments. These restructuring activities are part of the Company’s transformational initiatives supported by 80/20 principles and include product line transfers intended to achieve production efficiency improvements in its manufacturing facilities and targeted headcount reductions in Europe and Asia.

During the first nine months of fiscal 2023, restructuring and repositioning expenses primarily consisted of severance expenses related to targeted headcount reductions in Europe within the Performance Technologies segment. In addition, the Company incurred equipment transfer costs and closure costs related to a previously-leased facility in the Performance Technologies and Climate Solutions segments, respectively.

Restructuring and repositioning expenses were as follows:

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Employee severance and related benefits	$	0.7	$	-	$	0.8	$	1.4
Other restructuring and repositioning expenses		0.9		0.1		1.3		0.8
Total	$	1.6	$	0.1	$	2.1	$	2.2

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:

	Three months ended December 31,
	2023			2022
Beginning balance	$	3.2		$	12.9
Additions		0.7			-
Payments		(1.0	)		(1.9	)
Effect of exchange rate changes		0.1			1.2
Ending balance	$	3.0		$	12.2

	Nine months ended December 31,
	2023			2022
Beginning balance	$	10.6		$	20.2
Additions		0.8			1.4
Payments		(5.9	)		(8.6	)
Disposition of businesses (a)		(2.5	)		-
Effect of exchange rate changes		-			(0.8	)
Ending balance	$	3.0		$	12.2

(a)

The Company sold three automotive businesses based in Germany during the third quarter of fiscal 2024. Prior to the sale, the Company reclassified the severance liability related to these businesses as held for sale on the September 30, 2023 consolidated balance sheet. See Note 2 for additional information regarding the sale.