Restructuring and Impairment Activities

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

The Company incurred restructuring and impairment expenses of $0.8 million and $13.2 million for the three months ended March 31, 2023 and 2022, respectively. Restructuring and impairment expenses were primarily incurred in the ATM segment. Restructuring and impairment expenses for the three months ended March 31, 2023 were $0.7 million in the ATM segment and included $0.5 million related to the closure of the Appleton, Wisconsin facility. 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. These assets were measured at fair value as part of the purchase price allocation. The Company has recognized $1.7 million of restructuring charges cumulatively through March 31, 2023 related to this project. During the remainder of 2023, the Company expects to record additional restructuring related costs in the ATM segment of approximately $1.5 million related to the closing of the Appleton, Wisconsin facility.

Restructuring and impairment expenses for the three months ended March 31, 2022 were primarily related to the $12.9 million impairment of certain assets in conjunction with the planned divestiture of a portion of the legacy SWM ATM segment serving the industrials end market. These assets were sold during the third quarter of 2022 for net proceeds of $4.6 million and a loss of $0.4 million.

The following table summarizes total restructuring and impairment expense (in millions):


	Three Months Ended March 31,
		2023		2022
Restructuring and impairment expense:
Severance		$	0.1	$	0.2
Asset impairment		—		12.9
Other		0.7		0.1
Total restructuring and impairment expense		$	0.8	$	13.2
Other restructuring related charges - Cost of products sold
Accelerated depreciation and amortization		$	0.3	$	—


Other restructuring related charges - General expense
Accelerated depreciation and amortization		0.2		—
Total restructuring and impairment expense and other restructuring related charges		$	1.3	$	13.2

The following table summarizes changes in restructuring liabilities (in millions):


	Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	4.9	$	6.2


Cash payments	(0.5)		(1.4)
Foreign exchange impact	0.1		(0.1)
Balance at end of period	$	4.5	$	4.7

Restructuring liabilities were classified within Accrued expenses and other current liabilities and Other liabilities in the unaudited Condensed Consolidated Balance Sheets.