Restructuring and Other Charges, Net

12 Months Ended

Dec. 31, 2022

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

(3) Restructuring and Other Charges, Net

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

A summary of the pre-tax cost by restructuring program is as follows:

	Year Ended December 31,
	2022		2021		2020
	(in millions)
Restructuring costs:
2021 France Actions	$	5.1	$	19.7	$	—
Other Actions		5.5		(0.4)		9.9
Total restructuring charges	$	10.6	$	19.3	$	9.9

The Company recorded pre-tax restructuring in its business segments as follows:

	Year Ended December 31,
	2022		2021		2020
	(in millions)
Americas	$	2.2	$	(0.3)	$	6.1
Europe		8.5		19.5		1.3
APMEA		(0.1)		0.1		2.4
Corporate		—		—		0.1
Total	$	10.6	$	19.3	$	9.9

2021 France Restructuring Actions

On June 25, 2021, the Board of Directors approved a restructuring program with respect to the Company’s operating facilities in France, within its Europe operating segment. The restructuring program included the shutdown of the Company’s manufacturing facility in Méry, France and the consolidation of that facility’s operations primarily into the Company’s facilities in Virey-le-Grand and Hautvillers, France. As of December 31, 2022, the Company had incurred all pre-tax restructuring charges related to the program, resulting in total program charges of $24.8 million. The total charges include costs for employee severance, relocation of equipment, clean-up of the facility and certain asset write-downs, and resulted in the elimination of approximately 80 positions at the Méry, France facility. As a result of the facility consolidation, the net headcount reduction in France was approximately 40 positions. Total net after-tax charges for this restructuring program were approximately $18.4 million (including approximately $1.5 million in non-cash charges). The Company spent approximately $0.6 million in capital expenditures to consolidate operations. In the fourth quarter of 2022, the Company received cash proceeds from the sale of the manufacturing facility of approximately $4.3 million and recognized a pre-tax gain on sale of approximately $1.8 million. Annual cash savings, net of tax, are estimated to be approximately $3.0 million, which the Company expects to fully realize by 2023.

The following table summarizes by type, the total incurred pre-tax restructuring costs for the Company’s restructuring program related to the 2021 France Actions:

							Facility
			Legal and		Asset		exit
	Severance		consultancy		write-downs		and other		Total
	(in millions)
Costs incurred — 2021	$	16.9	$	0.9	$	0.9	$	1.0	$	19.7
Costs incurred — 2022		3.5		0.2		0.8		0.6		5.1
Total restructuring costs	$	20.4	$	1.1	$	1.7	$	1.6	$	24.8

Details of the restructuring reserve activity for the Company’s 2021 France Actions for the year ended December 31, 2022 are as follows:

							Facility
			Legal and		Asset		exit
	Severance		consultancy		write-downs		and other		Total
	(in millions)
Balance at December 31, 2020	$	—	$	—	$	—	$	—	$	—
Net pre-tax restructuring charges		16.9		0.9		0.9		1.0		19.7
Utilization and foreign currency impact		(7.0)		(0.7)		(0.9)		(0.5)		(9.1)
Balance at December 31, 2021	$	9.9	$	0.2	$	—	$	0.5	$	10.6
Net pre-tax restructuring charges		3.5		0.2		0.8		0.6		5.1
Utilization and foreign currency impact		(11.5)		(0.4)		(0.8)		(1.1)		(13.8)
Balance at December 31, 2022	$	1.9	$	—	$	—	$	—	$	1.9

Other Actions

The Company periodically initiates other actions which are not part of a major program. Total “Other Actions” pre-tax restructuring charges was expense of $5.5 million, a credit of $0.4 million and expense of $9.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Included in “Other Actions” for the year ended December 31, 2022, was $3.2 million and $0.9 million of restructuring charges associated with cost saving actions in the Europe and Americas segments, respectively, and related to severance and other costs; and $1.4 million of facility exit charges were recognized associated with the decommissioning of machinery at one of the Company’s facilities in the Americas.

Included in “Other Actions” for the year ended December 31, 2020, were actions taken in the Americas, Europe and APMEA segments and Corporate primarily in response to the COVID-19 pandemic. For the year ended December 31, 2021 total pre-tax charges for the 2020 “Other Actions” were reduced by approximately $0.8 million due to revised estimates for severance costs, health benefits and outplacement support. This resulted in total program restructuring charges of approximately $9.7 million.