Restructuring and Acquisition-Related Costs (Notes)

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

11. RESTRUCTURING AND ACQUISITION-RELATED COSTS

In 2022, we completed our acquisition of Tekfor Group (Tekfor) and in 2023 initiated certain restructuring actions associated with the acquired entities. We expect to incur restructuring costs associated with the acquired entities throughout 2024.

In the first quarter of 2024, we initiated a global restructuring program (the 2024 Program) focused on optimizing our cost structure. We expect to incur costs under the 2024 Program into 2026.

A summary of our restructuring activity for the first three months of 2024 and 2023 is shown below:


	Severance Charges		Implementation Costs		Total
	(in millions)
Accrual at December 31, 2022	$	2.4	$	1.4	$	3.8
Charges	0.3		3.7		4.0
Cash utilization	(0.7)		(2.5)		(3.2)


Accrual at March 31, 2023	$	2.0	$	2.6	$	4.6

Accrual at December 31, 2023	$	3.0	$	1.7	$	4.7
Charges	0.2		1.2		1.4
Cash utilization	(1.6)		(1.1)		(2.7)


Accrual at March 31, 2024	$	1.6	$	1.8	$	3.4

As part of our restructuring actions, we incurred total severance charges of approximately $0.2 million and $0.3 million during the three months ended March 31, 2024 and 2023, respectively. We also incurred total implementation costs of approximately $1.2 million and $3.7 million during the three months ended March 31, 2024 and 2023, respectively. Implementation costs consist primarily of plant exit costs. We incurred $0.2 million of costs related to restructuring actions associated with Tekfor and $1.2 million of costs under the 2024 Program in the three months ended March 31, 2024. We have incurred $2.3 million of total restructuring costs related to restructuring actions associated with Tekfor. Approximately $1.1 million of our total restructuring costs for the three months ended March 31, 2024 related to our Metal Forming segment, while the remainder were corporate costs. Substantially all of our total restructuring costs for the three months ended March 31, 2023 related to our Metal Forming segment. We expect to incur approximately $10 million to $20 million of total restructuring charges in 2024 associated with Tekfor and the 2024 Program.

The following table represents a summary of integration charges incurred primarily related to our acquisition of Tekfor:


	Integration Expenses
	(in millions)
Charges for the three months ended March 31, 2024	$	1.1
Charges for the three months ended March 31, 2023	0.8

Integration expenses primarily reflect costs incurred for information technology infrastructure and enterprise resource planning systems, and consulting fees incurred in conjunction with integration activities. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Operations and totaled $2.5 million and $4.8 million for the three months ended March 31, 2024 and March 31, 2023, respectively.