Cost-Reduction Actions

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

During the three months ended September 30, 2023, the company recognized net cost-reduction charges and other costs of $4.6 million. The net charges related to workforce reductions were $1.6 million, principally related to severance costs, and were comprised of: (a) a charge of $3.5 million and (b) a credit of $1.9 million for changes in estimates. The company recorded charges of $3.0 million comprised of $2.5 million for professional fees and other expenses related to cost-reduction efforts and $0.5 million for net foreign currency losses related to exiting foreign countries.

During the three months ended September 30, 2022, the company recognized net cost-reduction charges and other costs of $8.1 million. The company recorded charges of $7.6 million comprised of $4.7 million for asset impairments, $1.9 million for net foreign currency losses related to exiting foreign countries and $1.0 million for other expenses related to cost-reduction efforts. The company recorded a net charge related to workforce reductions of $0.5 million for changes in estimates.

During the nine months ended September 30, 2023, the company recognized net cost-reduction charges and other costs of $5.3 million. The net charges related to workforce reductions were $4.4 million, principally related to severance costs, and were comprised of: (a) a charge of $10.0 million and (b) a credit of $5.6 million for changes in estimates. The company recorded a net charge of $0.9 million comprised of a charge of $3.8 million for professional fees and other expenses related to cost-reduction efforts and a credit of $2.9 million for net foreign currency gains related to exiting foreign countries.

During the nine months ended September 30, 2022, the company recognized net cost-reduction charges and other costs of $14.2 million. The company recorded charges of $14.6 million comprised of $9.4 million for asset impairments, $4.8 million for net foreign currency losses related to exiting foreign countries and a net charge of $0.4 million for other expenses related to cost-reduction efforts. The company recorded a credit related to workforce reductions of $0.4 million for changes in estimates.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of revenue	$	0.7	$	3.9	$	4.1	$	7.4
Selling, general and administrative	3.1		2.4		3.6		2.2
Research and development	0.3		(0.1)		0.5		(0.2)
Other (expense), net	0.5		1.9		(2.9)		4.8
Total	$	4.6	$	8.1	$	5.3	$	14.2

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	10.0		2.8		7.2
Payments	(8.8)		(2.9)		(5.9)
Changes in estimates	(5.6)		(1.4)		(4.2)
Translation adjustments	(0.1)		—		(0.1)
Balance at September 30, 2023	$	7.2	$	2.7	$	4.5
Expected future utilization on balance at September 30, 2023:
Short-term	$	7.2	$	2.7	$	4.5