Cost-Reduction Actions

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

During the three months ended June 30, 2023, the company recognized net cost-reduction charges and other costs of $3.5 million. The net charge related to workforce reductions was $2.1 million, principally related to severance costs, and were comprised of: (a) a charge of $3.9 million and (b) a credit of $1.8 million for changes in estimates. In addition, the company recorded charges of $1.4 million comprised of $1.3 million for professional fees and other expenses related to cost-reduction efforts and $0.1 million for net foreign currency losses related to exiting foreign countries.

During the three months ended June 30, 2022, the company recognized net cost-reduction charges and other costs of $3.1 million. The company recorded charges of $3.4 million comprised of $1.8 million for net foreign currency losses related to exiting foreign countries, $0.9 million for asset impairments and $0.7 million for other expenses related to cost-reduction efforts. In addition, the company recorded a credit related to workforce reductions of $0.3 million for changes in estimates.

During the six months ended June 30, 2023, the company recognized net cost-reduction charges and other costs of $0.7 million. The net charge related to work-force reductions was $2.8 million, principally related to severance costs. These net charges were comprised of: (a) a charge of $6.5 million and (b) a credit of $3.7 million for changes in estimates. In addition, the company recorded a net credit of $2.1 million comprised of a credit of $3.4 million for net foreign currency gains related to exiting foreign countries and a charge of $1.3 million for professional fees and other expenses related to cost-reduction efforts.

During the six months ended June 30, 2022, the company recognized net cost-reduction charges and other costs of $6.1 million. The company recorded net charges of $7.0 million comprised of a charge of $2.9 million for net foreign currency losses related to exiting foreign countries, a charge of $4.7 million for asset impairments and a credit of $0.6 million for changes in estimates related to cost-reduction efforts. In addition, the company recorded a credit related to work-force reductions of $0.9 million for changes in estimates.

The charges (credits) were recorded in the following statement of income (loss) classifications:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	2.8	$	0.8	$	3.4	$	3.5
Selling, general and administrative	0.5		0.5		0.5		(0.2)
Research and development	0.1		—		0.2		(0.1)
Other (expense), net	0.1		1.8		(3.4)		2.9
Total	$	3.5	$	3.1	$	0.7	$	6.1

Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:


	Total		U.S.		International
Balance at December 31, 2022	$	11.7	$	4.2	$	7.5
Additional provisions	6.5		1.8		4.7
Payments	(4.4)		(2.1)		(2.3)
Changes in estimates	(3.7)		(1.2)		(2.5)
Translation adjustments	0.1		—		0.1
Balance at June 30, 2023	$	10.2	$	2.7	$	7.5
Expected future utilization on balance at June 30, 2023:
Short-term	$	10.2	$	2.7	$	7.5