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Restructuring and Impairment Activities | 12 Months Ended
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Dec. 31, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Activities | Restructuring and Impairment Activities Our restructuring programs have been developed with the objective of realigning the business and lowering our cost structure. As such, our ongoing programs relate to manufacturing and cost optimization. The Company incurred restructuring and impairment expenses of $19.3 million, $10.1 million, and $11.9 million in the years ended December 31, 2022, 2021 and 2020, respectively. In the FBS segment, restructuring and impairment expenses were $1.3 million, $8.2 million, and $11.3 million during the years ended December 31, 2022, 2021 and 2020, 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, $1.6 million was recognized during the year ended December 31, 2022 primarily related to pension benefits and $0.8 million was recognized during the year ended December 31, 2021 related to severance and other accruals. The FBS segment has recognized $2.4 million of restructuring charges cumulatively through December 31, 2022 related to this project. 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 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, $0.1 million, $4.7 million, and $6.7 million of restructuring and impairment expenses was recognized in the years ended December 31, 2022, 2021, and 2020, respectively.In the year ended December 31, 2021, restructuring and impairment expense was 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 was related to severance and other accruals. In the year ended December 31, 2020, we also recognized $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 recognized a net gain of $35.2 million including sales from other miscellaneous remaining assets which is included in Other income (expense), net. The FBS segment has recognized $16.5 million of restructuring charges cumulatively through December 31, 2022 related to this project. In addition to restructuring costs related to the Spotswood and Winkler facilities, the FBS segment recognized $(0.4) million, $2.7 million, and $4.6 million in restructuring and impairment expenses in the years ended December 31, 2022, 2021 and 2020, respectively, related to severance accruals at our other manufacturing facilities. These restructuring charges relate to ongoing cost optimization initiatives to remain competitive within the FBS segment. The FBS segment has recognized $11.5 million of restructuring charges cumulatively through December 31, 2022 related to this project. Additional restructuring and impairment costs to be incurred in 2023 in the FBS segment related to the closing of the Winkler, Manitoba facility is not material. In the ATM segment, the Company incurred $17.2 million, $1.9 million, and $0.5 million in restructuring and impairment expenses during the years ended December 31, 2022, 2021, and 2020, respectively. In the year ended December 31, 2022, restructuring and impairment expense was primarily due to a $12.9 million impairment of certain assets in conjunction with the divestiture of a portion of the legacy SWM ATM segment serving the industrials end-market. The assets were sold during the third quarter for net proceeds of $4.6 million and a loss of $0.4 million. We also incurred $1.9 million in restructuring and impairment expense resulting from the termination of a contract with an existing customer related to exclusivity in product manufacturing. Additionally, $1.2 million was recognized 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 5. Business Acquisitions for the purchase price allocation. As of December 31, 2022, assets held for sale of $10.5 million were included in Other assets. Restructuring and impairment expense for the year ended December 31, 2021 was related to the impairment of non-productive manufacturing equipment and severance accruals. Restructuring and impairment expense for the year ended December 31, 2020 was related to severance accruals. The Company expects to record additional restructuring and impairment costs in the ATM segment during 2023 of approximately $2.0 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. These expenses were not material for the year ended December 31, 2022 There were no unallocated restructuring and impairment expenses for the years ended December 31, 2021 and 2020. The following table summarizes total restructuring and related charges (in millions):
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Restructuring and impairment expense: |  |  |  |  |
Severance | $ | 2.0 |  |  | $ | 3.6 |  |  | $ | 11.6 |
Asset impairment | 14.0 |  |  | 1.6 |  |  | — |
Other | 3.3 |  |  | 4.9 |  |  | 0.3 |
Total restructuring and impairment expense | $ | 19.3 |  |  | $ | 10.1 |  |  | $ | 11.9 |
Other restructuring related charges - Cost of products sold |  |  |  |  |
Accelerated depreciation and amortization | $ | — |  |  | $ | 0.5 |  |  | $ | 2.9 |
Inventory write-down to estimated net realizable value | 0.8 |  | 0.2 |  |  | 2.0 |
Total other restructuring related charges - Cost of products sold | 0.8 |  |  | 0.7 |  |  | 4.9 |
Other restructuring related charges - General expense |  |  |  |  |
Accelerated depreciation and amortization | 0.3 |  |  | — |  |  | — |
Total restructuring and impairment expense and other restructuring related charges | $ | 20.4 |  |  | $ | 10.8 |  |  | $ | 16.8 |
Restructuring liabilities were classified within Accrued expenses and other current liabilities and Other liabilities in the Consolidated Balance Sheets as of December 31, 2022 and 2021. Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows (in millions):
| Years Ended December 31,
| 2022 |  | 2021
Balance at beginning of year | $ | 6.2 |  |  | $ | 7.4 |
Accruals for announced programs | 1.1 |  |  | 4.7 |
Accruals assumed from Merger(1) | 2.3 |  |  | — |
Cash payments | (4.4) |  |  | (5.7) |
Foreign exchange impact | (0.3) |  |  | (0.2) |
Balance at end of period | $ | 4.9 |  |  | $ | 6.2 |
(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.

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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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