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Restructuring and Impairment Activities | 9 Months Ended
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Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred restructuring and impairment expenses of $1.8 million and $1.9 million for the three months ended September 30, 2022 and 2021, respectively, and $17.4 million and $5.9 million for the nine months ended September 30, 2022 and 2021, respectively. In the FBS segment, there were $0.1 million of restructuring and impairment expenses for the three months ended September 30, 2022 and $1.9 million of restructuring and impairment expenses for the three months ended September 30, 2021. Restructuring and impairment expenses for the three months ended September 30, 2021 included $0.7 million related to severance and other accruals for the Winkler, Manitoba facility, $0.7 million related to severance accruals at other manufacturing facilities as part of the ongoing optimization project and $0.5 million related to the Spotswood site closure. In addition, $0.5 million related to 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 at the Winkler, Manitoba facility was included in Cost of products sold. Restructuring and impairment expenses in the FBS segment were $1.7 million and $5.9 million for the nine months ended September 30, 2022 and 2021, respectively. Restructuring and impairment expenses for the nine months ended September 30, 2022 included $1.5 million primarily related to pension benefits for the Winkler, Manitoba facility. Restructuring and impairment expenses for the nine months ended September 30, 2021 included $2.9 million related to the Spotswood site closure, $2.3 million related to severance accruals at other manufacturing facilities as part of the ongoing cost optimization project and $0.7 million related to pension benefits for the Winkler, Manitoba facility. In addition, $0.5 million related to 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 at the Winkler, Manitoba facility was included in Cost of products sold. During the remainder of 2022, the Company expects to record an insignificant amount of additional restructuring costs in the FBS segment related to the closing of the Winkler, Manitoba facility. In the ATM segment, restructuring and impairment expenses were $0.9 million and $14.9 million for the three and nine months ended September 30, 2022, respectively. Restructuring and impairment expenses for the three months ended September 30, 2022 included $0.7 million related to the closure of the Appleton, Wisconsin facility, a facility acquired through the Merger. The closure of this facility was substantially completed in September 2021 and its divestiture was planned prior to the Merger. The assets held for sale consist primarily of property, plant and equipment, which are measured at fair value as part of the purchase price allocation. Refer to Note 4. Business Acquisitions for the purchase price allocation. In addition, there was $0.2 million related to severance accruals resulting from the divestiture during the three months ended September 30, 2022 of a portion of the legacy SWM segment serving the industrials end-market. Restructuring and impairment expenses in the ATM segment for the nine months ended September 30, 2022 was primarily due to $12.9 million of impairment of certain assets in conjunction with the divestiture of a portion of the legacy SWM ATM segment serving the industrials end-market. These assets were sold during the quarter for net proceeds of $4.6 million and a loss of $0.4 million. In addition, there was $1.1 million for the termination of a contract with an existing customer related to exclusivity in product manufacturing and $0.7 million related to the closure of the Appleton, Wisconsin facility. There were no restructuring and impairment expenses for the three and nine months ended September 30, 2021. During the remainder of 2022, the Company expects to record additional restructuring related costs in the ATM segment of approximately $0.5 million related to the closing of the Appleton, Wisconsin facility. Restructuring and impairment costs related to the Merger are included in corporate expenses as other unallocated items as these costs are not included in management's evaluation of the segments' performance. Unallocated restructuring expenses for the three and nine months ended September 30, 2022 included $0.8 million related to the modification of leases resulting from the Merger. There were no unallocated restructuring expenses for the three and nine months ended September 30, 2021. The following table summarizes total restructuring and impairment expense (in millions):
| Three Months Ended |  | Nine Months Ended
| September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Restructuring and impairment expense: |  |  |  |  |  |  |
Severance | $ | 0.3 |  |  | $ | 1.2 |  |  | $ | 1.6 |  |  | $ | 2.8 |
Other | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 3.1 |
Asset impairment | 0.8 |  |  | — |  |  | 13.7 |  |  | — |
Total restructuring and impairment expense | $ | 1.8 |  |  | $ | 1.9 |  |  | $ | 17.4 |  |  | $ | 5.9 |
Other restructuring related charges - Cost of products sold |  |  |  |  |  |  |
Accelerated depreciation and amortization | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |
Spare parts and inventory write-downs to estimated net realizable value | $ | — |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | 0.4 |
Other restructuring related charges - Cost of products sold | — |  |  | 0.5 |  |  | — |  |  | 0.5 |
Total restructuring costs and related charges | $ | 1.8 |  |  | $ | 2.4 |  |  | $ | 17.4 |  |  | $ | 6.4 |
The following table summarizes changes in restructuring liabilities (in millions):
|  | Nine Months Ended
|  | September 30, 2022 |  | September 30, 2021
Balance at beginning of period |  | $ | 6.2 |  |  | $ | 7.4 |
Accruals for announced programs |  | 0.4 |  |  | 2.8 |
Accruals assumed from Merger(1) |  | 2.3 |  | — |
Cash payments |  | (2.6) |  |  | (4.8) |
Foreign exchange impact |  | (0.4) |  |  | (0.1) |
Balance at end of period |  | $ | 5.9 |  |  | $ | 5.3 |
(1) Accrued liabilities primarily for severance related to an optimization program at the Coldenhove, Netherlands facility and the closure of the Appleton, Wisconsin facility, both of which were acquired through the Merger. Restructuring liabilities were classified within Accrued expenses and other current liabilities and Other liabilities in the unaudited Condensed Consolidated Balance Sheets.

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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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