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Restructuring Expenses and Asset Impairments | 9 Months Ended
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Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring Expenses and Asset Impairments | Restructuring Expenses and Asset Impairments During the three and nine months ended September 30, 2022 and 2021, the Company incurred restructuring costs to facilitate long-term sustainable growth through cost reduction actions, consisting of employee reductions, facility rationalization and contract termination costs. Restructuring 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. 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 its 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 & 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 & 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 |  | — |  |  | — |  |  | — |  |  | — |
Total restructuring costs |  | $ | 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 |
Total restructuring costs |  | $ | 3.8 |  |  | $ | 0.3 |  |  | $ | 17.0 |  |  | $ | 21.1 |
2021 Initiative During the three and nine months ended September 30, 2021, the Company incurred severance costs related to employee reductions. In addition, the Company consolidated certain facilities within the FMT segment, which resulted in impairment charges related to property, plant and equipment that was not relocated to the new locations. Pre-tax restructuring expenses and asset impairments by segment for the three and nine months ended September 30, 2021 were as follows:
|  | Three Months Ended September 30, 2021
|  | Severance Costs |  | Exit Costs |  | Asset Impairment |  | Total
Fluid & Metering Technologies |  | $ | 1.4 |  |  | $ | — |  |  | $ | 0.6 |  |  | $ | 2.0 |
Health & Science Technologies |  | 0.6 |  |  | — |  |  | — |  |  | 0.6 |
Fire & Safety/Diversified Products |  | (0.1) |  |  | — |  |  | — |  |  | (0.1) |
Corporate/Other |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |
Total restructuring costs |  | $ | 2.6 |  |  | $ | — |  |  | $ | 0.6 |  |  | $ | 3.2 |
|  | Nine Months Ended September 30, 2021
|  | Severance Costs |  | Exit Costs |  | Asset Impairment |  | Total
Fluid & Metering Technologies |  | $ | 4.0 |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | 4.8 |
Health & Science Technologies |  | 1.7 |  |  | — |  |  | — |  |  | 1.7 |
Fire & Safety/Diversified Products |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Corporate/Other |  | 2.0 |  |  | — |  |  | — |  |  | 2.0 |
Total restructuring costs |  | $ | 7.8 |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | 8.6 |
Restructuring accruals reflected in Accrued expenses in the Company’s Condensed Consolidated Balance Sheets are as follows:
| Restructuring Initiatives
Balance at January 1, 2022 | $ | 2.8 |
Restructuring expenses | 4.1 |
Payments, utilization and other | (5.5) |
Balance at September 30, 2022 | $ | 1.4 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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