Cost-Reduction Actions

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

The company from time to time initiates cost reduction actions designed to improve operating efficiency, reduce costs and align the company’s workforce and facility structures to its overall business plan.

During the three months ended March 31, 2024, the company recognized net cost-reduction charges and other costs of $6.3 million. The net charges related to workforce reductions were $6.6 million, principally related to severance costs, and were comprised of: (a) a charge of $9.4 million and (b) a credit of $2.8 million for changes in estimates. The company recorded a net credit of $0.3 million comprised of a net credit of $0.8 million for changes in estimates related to other cost-reduction efforts and a charge of $0.5 million for net foreign currency losses related to exiting foreign countries.

During the three months ended March 31, 2023, the company recognized net charges related to workforce reductions of $0.7 million. These net charges were principally related to severance costs, and were comprised of: (a) a charge of $2.6 million and (b) a credit of $1.9 million for changes in estimates. In addition, the company recorded a credit of $3.5 million for net foreign currency gains related to exiting foreign countries.

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


	Three Months Ended March 31,
		2024		2023
Cost of revenue		$	1.0	$	0.6
Selling, general and administrative		3.8		—
Research and development		1.0		0.1
Other (expense), net		0.5		(3.5)
Total		$	6.3	$	(2.8)

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, 2023	$	9.4	$	2.5	$	6.9
Additional provisions	9.4		2.9		6.5
Payments	(1.9)		(0.4)		(1.5)
Changes in estimates	(2.8)		(0.2)		(2.6)
Translation adjustments	(0.2)		—		(0.2)
Balance at March 31, 2024	$	13.9	$	4.8	$	9.1
Expected future utilization on balance at March 31, 2024:
Short-term	$	13.9	$	4.8	$	9.1