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Realignment Programs | 6 Months Ended
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Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
Realignment Programs | Realignment Programs In the first quarter of 2023, we identified and initiated certain realignment activities concurrent with the consolidation of our FPD aftermarket and pump operations into a single operating model. This consolidated operating model is designed to better align our go-to-market strategy with our product offerings, enable end-to-end lifecycle responsibility and accountability, and to facilitate more efficient operations. During 2023, we also initiated certain product and portfolio optimization activities. Additionally, we committed to an estimated $50 million in cost reduction efforts to begin in 2023. Collectively, the above realignment activities are referred to as the "2023 Realignment Programs." The activities of the 2023 Realignment Programs were identified and implemented in phases throughout 2023 and are continuing into 2024. The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with workforce reductions and professional service fees. Expenses are primarily reported in cost of sales ("COS") or SG&A, as applicable, in our condensed consolidated statements of income. We currently anticipate a total investment in realignment activities that have been evaluated and initiated of approximately $107 million of which $31 million is estimated to be non-cash. There are certain remaining realignment activities that are currently being evaluated, but have not yet been approved and therefore are not included in the above anticipated total investment. Generally, the aforementioned charges will be paid in cash, except for asset write-downs, which are non-cash charges. The following is a summary of total charges, net of adjustments, incurred related to our 2023 Realignment Programs:
| Three Months Ended June 30, 2024
(Amounts in thousands) | FPD |  | FCD |  | Subtotal–Reportable Segments |  | All Other |  | Consolidated Total
Realignment Charges |  |  |  |  |  |  |  |  |
Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 6,994 |  |  | $ | 129 |  |  | $ | 7,123 |  |  | $ | — |  |  | $ | 7,123 |
SG&A | 50 |  |  | (69) |  |  | (19) |  |  | (28) |  |  | (47) |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | 12,981 |
| $ | 7,044 |  |  | $ | 13,041 |  |  | $ | 20,085 |  |  | $ | (28) |  |  | $ | 20,057 |
Non-Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 384 |  |  | $ | 92 |  |  | $ | 476 |  |  | $ | (78) |  |  | $ | 398 |
SG&A | (770) |  |  | 16 |  |  | (754) |  |  | 534 |  |  | (220) |
| $ | (386) |  |  | $ | 108 |  |  | $ | (278) |  |  | $ | 456 |  |  | $ | 178 |
Total Realignment Charges |  |  |  |  |  |  |  |  |
COS | $ | 7,378 |  |  | $ | 221 |  |  | $ | 7,599 |  |  | $ | (78) |  |  | $ | 7,521 |
SG&A | (720) |  |  | (53) |  |  | (773) |  |  | 506 |  |  | (267) |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | 12,981 |
Total | $ | 6,658 |  |  | $ | 13,149 |  |  | $ | 19,807 |  |  | $ | 428 |  |  | $ | 20,235 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report.
| Three Months Ended June 30, 2023
(Amounts in thousands) | FPD |  | FCD |  | Subtotal–Reportable Segments |  | All Other |  | Consolidated Total
Realignment Charges |  |  |  |  |  |  |  |  |
Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 1,410 |  |  | $ | — |  |  | $ | 1,410 |  |  | $ | — |  |  | $ | 1,410 |
SG&A | — |  |  | (29) |  |  | (29) |  |  | 1 |  |  | (28) |
| $ | 1,410 |  |  | $ | (29) |  |  | $ | 1,381 |  |  | $ | 1 |  |  | $ | 1,382 |
Non-Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | (457) |  |  | $ | 3,153 |  |  | $ | 2,696 |  |  | $ | — |  |  | $ | 2,696 |
SG&A | 17 |  |  | 29 |  |  | 46 |  |  | 7,427 |  |  | 7,473 |
| $ | (440) |  |  | $ | 3,182 |  |  | $ | 2,742 |  |  | $ | 7,427 |  |  | $ | 10,169 |
Total Realignment Charges |  |  |  |  |  |  |  |  |
COS | $ | 953 |  |  | $ | 3,153 |  |  | $ | 4,106 |  |  | $ | — |  |  | $ | 4,106 |
SG&A | 17 |  |  | — |  |  | 17 |  |  | 7,428 |  |  | 7,445 |
Total | $ | 970 |  |  | $ | 3,153 |  |  | $ | 4,123 |  |  | $ | 7,428 |  |  | $ | 11,551 |
| Six Months Ended June 30, 2024
(Amounts in thousands) | FPD |  | FCD |  | Subtotal–Reportable Segments |  | All Other |  | Consolidated Total
Realignment Charges |  |  |  |  |  |  |  |  |
Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 11,408 |  |  | $ | 144 |  |  | $ | 11,552 |  |  | $ | — |  |  | $ | 11,552 |
SG&A | 751 |  |  | (69) |  |  | 682 |  |  | (28) |  |  | 654 |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | 12,981 |
| $ | 12,159 |  |  | $ | 13,056 |  |  | $ | 25,215 |  |  | $ | (28) |  |  | $ | 25,187 |
Non-Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 1,014 |  |  | $ | 844 |  |  | $ | 1,858 |  |  | $ | (216) |  |  | $ | 1,642 |
SG&A | (430) |  |  | 130 |  |  | (300) |  |  | 873 |  |  | 573 |
| $ | 584 |  |  | $ | 974 |  |  | $ | 1,558 |  |  | $ | 657 |  |  | $ | 2,215 |
Total Realignment Charges |  |  |  |  |  |  |  |  |
COS | $ | 12,422 |  |  | $ | 988 |  |  | $ | 13,410 |  |  | $ | (216) |  |  | $ | 13,194 |
SG&A | 321 |  |  | 61 |  |  | 382 |  |  | 845 |  |  | 1,227 |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | $ | 12,981 |
Total | $ | 12,743 |  |  | $ | 14,030 |  |  | $ | 26,773 |  |  | $ | 629 |  |  | $ | 27,402 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report.
| Six Months Ended June 30, 2023
(Amounts in thousands) | FPD |  | FCD |  | Subtotal–Reportable Segments |  | All Other |  | Consolidated Total
Realignment Charges |  |  |  |  |  |  |  |  |
Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 398 |  |  | $ | — |  |  | $ | 398 |  |  | $ | 66 |  |  | $ | 464 |
SG&A | — |  |  | 8,876 |  |  | 8,876 |  |  | 1 |  |  | 8,877 |
| $ | 398 |  |  | $ | 8,876 |  |  | $ | 9,274 |  |  | $ | 67 |  |  | $ | 9,341 |
Non-Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 945 |  |  | $ | 3,164 |  |  | $ | 4,109 |  |  | $ | (265) |  |  | $ | 3,844 |
SG&A | 2,067 |  |  | 30 |  |  | 2,097 |  |  | 13,148 |  |  | 15,245 |
| $ | 3,012 |  |  | $ | 3,194 |  |  | $ | 6,206 |  |  | $ | 12,883 |  |  | $ | 19,089 |
Total Realignment Charges |  |  |  |  |  |  |  |  |
COS | $ | 1,343 |  |  | $ | 3,164 |  |  | $ | 4,507 |  |  | $ | (199) |  |  | $ | 4,308 |
SG&A | 2,067 |  |  | 8,906 |  |  | 10,973 |  |  | 13,149 |  |  | 24,122 |
Total | $ | 3,410 |  |  | $ | 12,070 |  |  | $ | 15,480 |  |  | $ | 12,950 |  |  | $ | 28,430 |
The following is a summary of total inception to date charges, net of adjustments, related to the 2023 Realignment Programs:
| Inception to Date
(Amounts in thousands) | FPD |  | FCD |  | Subtotal–Reportable Segments |  | All Other |  | Consolidated Total
Realignment Charges |  |  |  |  |  |  |  |  |
Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 14,370 |  |  | $ | 6,549 |  |  | $ | 20,919 |  |  | $ | 66 |  |  | $ | 20,985 |
SG&A | 801 |  |  | 9,708 |  |  | 10,509 |  |  | (28) |  |  | 10,481 |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | 12,981 |
| $ | 15,171 |  |  | $ | 29,238 |  |  | $ | 44,409 |  |  | $ | 38 |  |  | $ | 44,447 |
Non-Restructuring Charges |  |  |  |  |  |  |  |  |
COS | $ | 8,849 |  |  | $ | 5,015 |  |  | $ | 13,864 |  |  | $ | (643) |  |  | $ | 13,221 |
SG&A | 14,053 |  |  | 1,746 |  |  | 15,799 |  |  | 19,972 |  |  | 35,771 |
| $ | 22,902 |  |  | $ | 6,761 |  |  | $ | 29,663 |  |  | $ | 19,329 |  |  | $ | 48,992 |
Total Realignment Charges |  |  |  |  |  |  |  |  |
COS | $ | 23,219 |  |  | $ | 11,564 |  |  | $ | 34,783 |  |  | $ | (577) |  |  | $ | 34,206 |
SG&A | 14,854 |  |  | 11,454 |  |  | 26,308 |  |  | 19,944 |  |  | 46,252 |
Loss on sale of business(1) | — |  |  | 12,981 |  |  | 12,981 |  |  | — |  |  | 12,981 |
Total | $ | 38,073 |  |  | $ | 35,999 |  |  | $ | 74,072 |  |  | $ | 19,367 |  |  | $ | 93,439 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report. Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. The following is a summary of restructuring charges, net of adjustments, for our restructuring activities related to our 2023 Realignment Programs:
| Three Months Ended June 30, 2024
(Amounts in thousands) | Severance |  | Contract Termination |  | Asset Write-Downs (Gains) |  | Other |  | Total
COS | $ | (89) |  |  | $ | — |  |  | $ | 6,507 |  |  | $ | 705 |  |  | $ | 7,123 |
SG&A | 84 |  |  | — |  |  | 247 |  |  | (378) |  |  | (47) |
Loss on sale of business(1) | — |  |  | — |  |  | — |  |  | 12,981 |  |  | 12,981 |
Total | $ | (5) |  |  | $ | — |  |  | $ | 6,754 |  |  | $ | 13,308 |  |  | $ | 20,057 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report.
| Three Months Ended June 30, 2023
(Amounts in thousands) | Severance |  | Contract Termination |  | Asset Write-Downs (Gains) |  | Other |  | Total
COS | $ | 255 |  |  | $ | 228 |  |  | $ | 33 |  |  | $ | 894 |  |  | $ | 1,410 |
SG&A | (5) |  |  | — |  |  | (29) |  |  | 6 |  |  | (28) |
Total | $ | 250 |  |  | $ | 228 |  |  | $ | 4 |  |  | $ | 900 |  |  | $ | 1,382 |
| Six Months Ended June 30, 2024
(Amounts in thousands) | Severance |  | Contract Termination |  | Asset Write-Downs (Gains) |  | Other |  | Total
COS | $ | 3,896 |  |  | $ | — |  |  | $ | 6,507 |  |  | $ | 1,149 |  |  | $ | 11,552 |
SG&A | 785 |  |  | — |  |  | 247 |  |  | (378) |  |  | 654 |
Loss on sale of business(1) | — |  |  | — |  |  | — |  |  | 12,981 |  |  | 12,981 |
Total | $ | 4,681 |  |  | $ | — |  |  | $ | 6,754 |  |  | $ | 13,752 |  |  | $ | 25,187 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report.
| Six Months Ended June 30, 2023
(Amounts in thousands) | Severance |  | Contract Termination |  | Asset Write-Downs (Gains) |  | Other |  | Total
COS | $ | 441 |  |  | $ | 294 |  |  | $ | (1,270) |  |  | $ | 999 |  |  | $ | 464 |
SG&A | — |  |  | — |  |  | 8,871 |  |  | 6 |  |  | 8,877 |
Total | $ | 441 |  |  | $ | 294 |  |  | $ | 7,601 |  |  | $ | 1,005 |  |  | $ | 9,341 |
The following is a summary of total inception to date restructuring charges, net of adjustments, related to our 2023 Realignment Programs:
| Inception to Date
(Amounts in thousands) | Severance |  | Contract Termination |  | Asset Write-Downs (Gains) |  | Other |  | Total
COS | $ | 10,981 |  |  | $ | 301 |  |  | $ | 7,301 |  |  | $ | 2,402 |  |  | $ | 20,985 |
SG&A | 1,735 |  |  | — |  |  | 9,118 |  |  | (372) |  |  | 10,481 |
Loss on sale of business(1) | — |  |  | — |  |  | — |  |  | 12,981 |  |  | 12,981 |
Total | $ | 12,716 |  |  | $ | 301 |  |  | $ | 16,419 |  |  | $ | 15,011 |  |  | $ | 44,447 |
__________________________________ (1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Basis of Presentation and Accounting Policies," to our condensed consolidated financial statements included in this Quarterly Report. The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2024 and 2023:
(Amounts in thousands) | 2024 |  | 2023
Balance at January 1 | $ | 8,184 |  |  | $ | 965 |
Charges, net of adjustments | 5,566 |  |  | 1,739 |
Cash expenditures | (72) |  |  | (1,231) |
Other non-cash adjustments, including currency | (2,714) |  |  | (170) |
Balance at June 30 | $ | 10,964 |  |  | $ | 1,303 |

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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