Restructuring Expenses and Asset Impairments

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Expenses and Asset Impairments

Restructuring Expenses and Asset Impairments

From time to time, the Company incurs expenses to facilitate long-term sustainable growth through cost reduction actions, consisting of employee reductions, facility rationalization and contract termination costs. These costs include severance costs, exit costs and asset impairments and are included in Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income. Severance costs primarily consist of severance benefits through payroll continuation, COBRA subsidies, outplacement services, conditional separation costs and employer tax liabilities, while exit costs primarily consist of lease exit and contract termination costs.

2023 Initiative

During the three and nine months ended September 30, 2023, the Company incurred severance costs related to employee reductions in conjunction with cost mitigation efforts as a result of current market conditions, contract termination costs and asset impairments.

Pre-tax restructuring expenses and asset impairments by segment for the three and nine months ended September 30, 2023 were as follows:

	Three Months Ended September 30, 2023
	Severance Costs		Exit Costs		Asset Impairments		Total
Fluid & Metering Technologies	$	0.8	$	0.6	$	0.3	$	1.7
Health & Science Technologies	1.5		—		—		1.5
Fire & Safety/Diversified Products	0.4		—		—		0.4
Corporate/Other	0.5		—		—		0.5
Restructuring expenses and asset impairments	$	3.2	$	0.6	$	0.3	$	4.1

	Nine Months Ended September 30, 2023
	Severance Costs		Exit Costs		Asset Impairments		Total
Fluid & Metering Technologies	$	1.0	$	0.6	$	0.8	$	2.4
Health & Science Technologies	4.5		—		—		4.5
Fire & Safety/Diversified Products	0.8		—		—		0.8
Corporate/Other	0.5		—		—		0.5
Restructuring expenses and asset impairments	$	6.8	$	0.6	$	0.8	$	8.2

2022 Initiative

During the three and nine months ended September 30, 2022, the restructuring costs incurred by the Company primarily related to asset impairments. In addition, the Company also incurred severance costs related to employee reductions.

In the second quarter of 2020, the Company engaged in the development of a COVID-19 testing application with a customer at one of the Company’s businesses in the HST segment. As part of this contract, the customer fully funded the $28.7 million investment needed to complete the development and production of microfluidic cartridges during 2020 and 2021. The costs incurred by the Company were primarily recorded as Property, plant and equipment – net in the Condensed Consolidated Balance Sheets and were being depreciated over the expected life of the assets, while the reimbursement was recorded as Deferred revenue in the Condensed Consolidated Balance Sheets and was being recognized as units were shipped.

In the third quarter of 2022, the Company was informed by the customer of its decision to discontinue further investment in commercializing its COVID-19 testing application. This event was deemed a triggering event, which required an interim impairment test be performed on the Property, plant and equipment related to this contract, resulting in an impairment charge of $16.8 million that was recorded as Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income during three and nine months ended September 30, 2022. In addition, the Company accelerated previously deferred revenue of $17.9 million related to units that are no longer expected to be shipped and recorded it as Net sales in the Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2022.

Pre-tax restructuring expenses and asset impairments by segment for the three and nine months ended September 30, 2022 were as follows:

	Three Months Ended September 30, 2022
	Severance Costs		Exit Costs		Asset Impairments		Total
Fluid & Metering Technologies	$	0.1	$	—	$	—	$	0.1
Health & Science Technologies	0.4		—		16.8		17.2
Fire & Safety/Diversified Products	0.4		—		—		0.4
Corporate/Other	—		—		—		—
Restructuring expenses and asset impairments	$	0.9	$	—	$	16.8	$	17.7

	Nine Months Ended September 30, 2022
	Severance Costs		Exit Costs		Asset Impairments		Total
Fluid & Metering Technologies	$	1.6	$	0.3	$	0.2	$	2.1
Health & Science Technologies	0.6		—		16.8		17.4
Fire & Safety/Diversified Products	1.4		—		—		1.4
Corporate/Other	0.2		—		—		0.2
Restructuring expenses and asset impairments	$	3.8	$	0.3	$	17.0	$	21.1

Restructuring accruals reflected in Accrued expenses in the Company’s Condensed Consolidated Balance Sheets are as follows:

	Restructuring Initiatives
Balance at January 1, 2023	$	1.4
Restructuring expenses	7.4
Payments, utilization and other	(5.4)
Balance at September 30, 2023	$	3.4