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Restructuring and Other Charges
3 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Other Charges

16.

Restructuring and Other Charges

On June 29, 2020, the Company committed to a series of restructuring activities within its Access Equipment segment. On that day, the Company announced that it would close its Medias, Romania manufacturing facility. The Company intends to relocate production to factories in the United States, Mexico and China. The Company also announced that it would close its service center in Riverside, California. Both facilities are being closed to simplify and better align operations to support customers and enable sustainable growth. The Company intends to cease all operations in Medias by June 30, 2021 and ceased all operations in Riverside as of December 31, 2020. In addition, the Access Equipment segment initiated targeted reductions in its salaried workforce in response to the ongoing COVID-19 pandemic. The Company incurred charges related to restructuring of $4.8 million during the three months ended December 31, 2020, consisting of long-lived asset impairments, lease termination costs and employee severance costs. The Company incurred additional charges of $3.2 million related to these restructuring actions during the three months ended December 31, 2020, including $2.8 million of accelerated depreciation and $0.4 million in inventory obsolescence.

On July 23, 2020, the Company committed to a series of restructuring activities within the Commercial segment. On that day, the Company announced that it would cease production of rear discharge concrete mixers at its Dodge Center, Minnesota, facility and relocate it to London, Ontario. The Dodge Center factory will focus on refuse collection vehicle manufacturing. The Company believes both product lines will benefit from focused facilities. The Company ceased all concrete mixer operations in Dodge Center as of December 31, 2020. The Company incurred charges related to restructuring of $0.1 million during the three months ended December 31, 2020, consisting of severance costs and other post-employment-related benefits.

Pre-tax restructuring charges were as follows (in millions):

 

 

 

Three Months Ended December 31, 2020

 

 

 

Cost of Sales

 

 

Selling, General and

Administrative

Expenses

 

 

Total

 

Access Equipment

 

$

4.5

 

 

$

0.3

 

 

$

4.8

 

Commercial

 

 

0.1

 

 

 

 

 

 

0.1

 

Corporate

 

 

 

 

 

(0.4

)

 

 

(0.4

)

Total

 

$

4.6

 

 

$

(0.1

)

 

$

4.5

 

 

Changes in the Company’s restructuring reserves, included within “Other current liabilities” in the Condensed Consolidated Balance Sheets, were as follows (in millions):

 

 

Employee Severance

and Termination

Benefits

 

 

Property, Plant and

Equipment

Impairment

 

 

Other Costs

 

 

Total

 

Balance at September 30, 2020

 

$

9.7

 

 

$

 

 

$

0.3

 

 

$

10.0

 

Restructuring provision

 

 

0.2

 

 

 

2.3

 

 

 

2.0

 

 

 

4.5

 

Utilized - cash

 

 

(5.7

)

 

 

 

 

 

(1.4

)

 

 

(7.1

)

Utilized - noncash

 

 

 

 

 

(2.3

)

 

 

 

 

 

(2.3

)

Foreign currency translation

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Balance at December 31, 2020

 

$

4.3

 

 

$

 

 

$

0.9

 

 

$

5.2