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Restructuring and Impairment Activities | 12 Months Ended
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Dec. 31, 2021
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred restructuring and impairment expenses of $10.1 million, $11.9 million, and $3.7 million in the years ended December 31, 2021, 2020 and 2019, respectively. In the EP segment, restructuring and impairment expenses were $8.2 million, $11.3 million, and $2.6 million during the years ended December 31, 2021, 2020 and 2019, respectively. During the third quarter of 2021, we announced plans to close the Winkler, Manitoba facility in Canada. The decision was part of our ongoing manufacturing optimization efforts. Manufacturing at this facility ceased during December of 2021. As a result of this decision, $0.8 million of restructuring and impairment expense was recognized during the year ended December 31, 2021, related to severance and other accruals. During the year ended December 31, 2021, we also recorded $0.7 million of other restructuring related charges in Cost of products sold, including the write down of certain inventories to net realizable value and the acceleration of depreciation of machinery and equipment due to the change in the estimated lives of these assets. During the third quarter of 2020, we announced plans to shut down the Spotswood, New Jersey facility and shift the production of paper made there to other SWM facilities. This decision was part of our ongoing manufacturing optimization efforts and involved the co-development of a new paper production technology with one of the Company’s key customers. Production of paper at this facility ceased as of December 31, 2020. As a result of this decision, $4.7 million and $6.7 million of restructuring and impairment expense was recognized in the year ended December 31, 2021 and 2020, respectively. In the year ended December 31, 2021, restructuring and impairment expenses related to costs associated with closing the facility and preparing it for sale, medical benefits and other accruals. Restructuring and impairment expense in the year ended December 31, 2020 related to severance and other accruals. In the year ended December 31, 2020, we also recorded $4.9 million of other restructuring related charges in Cost of products sold, of which, $2.0 million was to write-down the value of certain spare parts and consignment inventories to estimated net realizable value and $2.9 million resulted from the acceleration of depreciation and amortization for machinery and equipment due to the change in the estimated lives of these assets driven by the decision to shut down the facility. The Spotswood site was sold on December 9, 2021, for total proceeds of $34.4 million, and the Company recorded a net gain of $35.2 million including sales from other miscellaneous remaining assets which is included in Other income (expense), net. In addition to restructuring costs relating to the Spotswood and Winkler facilities, the EP segment recognized $2.7 million in the year ended December 31, 2021, related to severance accruals for employees at manufacturing facilities, primarily in France. In 2020 and 2019, restructuring and impairment expenses in the EP segment consisted of $4.6 million and $2.6 million, respectively, relating to severance accruals at our other manufacturing facilities, primarily in France. These restructuring charges relate to ongoing cost optimization initiatives to remain competitive within the EP segment. The cost optimization initiative project started in 2019 is expected to be completed in 2022. The EP segment has recognized $11.9 million of restructuring charges cumulatively through December 31, 2021, related to this project. The Company expects to record additional restructuring and impairment costs in the EP segment during 2022 of approximately $1.5 million relating to the closing of the Winkler, Manitoba facility for severance, settlement of post-retirement benefit obligations and retention. In the AMS segment, the Company incurred $1.9 million, $0.5 million, and $1.1 million in restructuring and impairment expenses during the years ended December 31, 2021, 2020, and 2019, respectively. In 2021, restructuring and impairment expense primarily related to the impairment of non-productive manufacturing equipment and severance accruals. Restructuring and impairment expense for the year ended December 31, 2020 related to severance accruals. Restructuring and impairment expense for the year ended December 31, 2019, consisted of impairment charges at our U.S. and Chinese manufacturing facilities. The following table summarizes total restructuring and related charges:
| For the Years Ended December 31,
| 2021 |  | 2020 | 2019
Restructuring and impairment expense: |  |  |  |
Severance | $ | 3.6 |  |  | $ | 11.6 |  | $ | 2.6 |
Other | 4.9 |  |  | 0.3 |  | 1.1 |
Asset impairment | 1.6 |  |  | — |  | — |
Total restructuring and impairment expense | $ | 10.1 |  |  | $ | 11.9 |  | $ | 3.7 |
Other restructuring related charges - Cost of products sold |  |  |  |
Accelerated depreciation and amortization | 0.5 |  | 2.9 |  | — |
Spare parts and consignment inventory write-down to estimated net realizable value | 0.2 |  | 2.0 |  | — |
Total other restructuring related charges - Cost of products sold | $ | 0.7 |  |  | $ | 4.9 |  | $ | — |
Total restructuring and impairment expense and other restructuring related charges | $ | 10.8 |  |  | $ | 16.8 |  | $ | 3.7 |
Restructuring liabilities were classified within Accrued expenses and Other Liabilities in each of the Consolidated Balance Sheets as of December 31, 2021, and 2020. Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows ($ in millions):
| 2021 |  | 2020
Balance at beginning of year | $ | 7.4 |  |  | $ | 0.5 |
Accruals for announced programs | 4.7 |  |  | 11.9 |
Cash payments | (5.7) |  |  | (5.2) |
Exchange rate impacts | (0.2) |  |  | 0.2 |
Balance at end of period | $ | 6.2 |  |  | $ | 7.4 |

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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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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