Restructuring and Transformation Program

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Transformation Programs

Restructuring and Transformation Program

In 2021, we launched and committed resources to a program designed to accelerate growth and drive margin expansion through transformation of our business model to drive operational excellence, reduce complexity and streamline our processes (the “Transformation Program”). The Transformation Program is structured in multiple phases and is expected to empower us to work more efficiently and optimize our business to better serve our customers while meeting our financial objectives.

During the six months ended June 30, 2024, we initiated and continued execution of activities associated with our Transformation Program as well as initiated and continued certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Restructuring and Transformation Program initiatives included a reduction in hourly and salaried headcount of approximately 200 employees during the six months ended June 30, 2024.

Restructuring and transformation-related costs included within Cost of goods sold and Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included the following: 

	Three months ended				Six months ended
In millions	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Restructuring Initiatives
Severance and related costs	$	5.4	$	0.9	$	9.4	$	3.4
Other restructuring costs and related adjustments (1)	(0.1)		(0.1)		0.9		0.5
Total restructuring costs	5.3		0.8		10.3		3.9
Transformation Program
Severance and related costs	0.3		0.3		0.7		2.2
Other transformation costs (2)	11.5		5.7		28.1		12.3
Total transformation costs	11.8		6.0		28.8		14.5
Total restructuring and transformation costs	$	17.1	$	6.8	$	39.1	$	18.4
(1) Other restructuring costs and related adjustments primarily consist of certain accruals, various contract termination costs, asset impairments and inventory write-offs associated with business and product line exits.
(2) Other transformation costs primarily consist of professional services and project management related costs, partially offset by gain on sale of assets.

Restructuring and transformation costs by reportable segment as well as Corporate and other were as follows:

	Three months ended				Six months ended
In millions	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Flow	$	2.4	$	0.8	$	5.0	$	1.2
Water Solutions	0.9		(2.6)		1.5		(1.1)
Pool	1.7		1.9		5.4		5.2
Corporate and other	12.1		6.7		27.2		13.1
Total restructuring and transformation costs	$	17.1	$	6.8	$	39.1	$	18.4

Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the six months ended June 30, 2024: 

In millions	June 30, 2024
Beginning balance	$	13.4
Costs incurred	10.1
Cash payments and other	(12.1)
Ending balance	$	11.4