Restructuring and Other Charges, Net

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
	(in millions)
Restructuring costs:
2021 France Actions	$	0.4	$	5.1	$	19.7
Other Actions		5.1		5.5		(0.4)
Total restructuring charges	$	5.5	$	10.6	$	19.3

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

	Year Ended December 31,
	2023		2022		2021
	(in millions)
Americas	$	2.5	$	2.2	$	(0.3)
Europe		2.0		8.5		19.5
APMEA		1.0		(0.1)		0.1
Total	$	5.5	$	10.6	$	19.3

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, 2023, the Company had incurred all pre-tax restructuring charges related to the program, resulting in total program charges of $25.2 million. Total net after-tax charges for this restructuring program were approximately $18.6 million. 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, approximated $3.0 million, and were fully realized in 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
Costs incurred — 2023		0.4		—		—		—		0.4
Total restructuring costs	$	20.8	$	1.1	$	1.7	$	1.6	$	25.2

Details of the restructuring reserve activity for the Company’s 2021 France Actions for the year ended December 31, 2023 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
Net pre-tax restructuring charges		0.4		—		—		—		0.4
Utilization and foreign currency impact		(2.1)		—		—		—		(2.1)
Balance at December 31, 2023	$	0.2	$	—	$	—	$	—	$	0.2

Other Actions

The Company periodically initiates other actions which are not part of a major program. Included in “Other Actions” for the year ended December 31, 2023, were immaterial actions primarily taken in the Americas segment related to the approved closure of two facilities and consolidation of the related productions into existing facilities. The facility exits were substantially completed in the fourth quarter of 2023 and total costs approximated $2.0 million. One of the programs includes the sale of the facility which is expected to be completed in the first half of 2024 and will generate cash proceeds and an expected gain on sale. Also included in “Other Actions” for the Americas segment was $0.6 million of severance related to head count and cost reductions actions which is expected to take place in the first half of 2024.

Included in “Other Actions” for the year ended December 31, 2023, was $1.6 million of restructuring charges recognized in the Europe segment related to cost saving actions and primarily include severance costs.

Included in “Other Actions” for the year ended December 31, 2023, was $1.1 million of restructuring charges recognized in the APMEA segment related to Enware Australia Pty Ltd (“Enware”) acquisition primarily for severance costs within the Enware restructuring program. The total program costs are estimated to be $2.0 million in restructuring charges and the remaining $0.9 million in other exit costs are expected to be incurred through the first half of 2024.

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.