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Restructuring and Other Impairment Activities | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Other Impairment Activities | Restructuring and Other Impairment Activities The Company incurred restructuring and other impairment expense of $16.3 million and $1.8 million for the three months ended September 30, 2023 and 2022, respectively, and $17.6 million and $17.3 million for the nine months ended September 30, 2023 and 2022, respectively. Restructuring and other impairment expenses in the ATM segment were $6.8 million for the three months ended September 30, 2023. During the third quarter of 2023, we announced plans to close two facilities as a result of decisions to exit certain end markets amid ongoing manufacturing optimization efforts. The facilities are expected to close in 2024 and 2025. As a result of these planned closures, $5.5 million of fixed asset and certain other asset impairment was recognized. In addition, the ATM segment recognized $0.5 million of restructuring expense for the three months ended September 30, 2023 related to facilities closed in prior years. Restructuring and other impairment expenses in the ATM segment for the three months ended September 30, 2022 were $0.9 million, which included $0.7 million related to facilities closed in prior years. In the ATM segment, restructuring and other impairment expenses for the nine months ended September 30, 2023 were $8.0 million primarily comprised of fixed asset and certain other asset impairment for our planned facility closures and $1.5 million related to facilities closed in prior years. Restructuring and other impairment expenses for the nine months ended September 30, 2022 were $14.9 million, primarily related to the impairment of certain assets in conjunction with the divestiture of a portion of the legacy SWM ATM segment. These assets were sold during the third quarter of 2022 for net proceeds of $4.6 million and a loss of $0.4 million. Through September 30, 2023 the Company has recognized accumulated restructuring charges of $5.5 million related to the announced facility closures and $2.7 million related to facilities closed in prior years in the ATM segment. During the remainder of 2023, the Company expects to record additional restructuring related costs in the ATM segment of approximately $3.1 million related to the closing of these facilities. In the FBS segment, restructuring and other impairment expenses for the nine months ended September 30, 2023 and 2022 were $9.6 million and $1.6 million, respectively. During the third quarter of 2023 the Company recognized impairment charges of $9.5 million related to long-lived assets at our Eerbeek, Netherlands facility. An impairment assessment was performed after significant changes in market conditions, including the entrance of new competitors and products caused management to revise our long-term view on pricing and volume recovery. The impairment reduced the carrying value of the assets to fair value, which was determined using management estimates for future cash flows. Restructuring and other impairment expenses for the nine months ended September 30, 2022 were $1.6 million related to closed facilities. Other restructuring related inventory adjustments and acceleration of depreciation due to changes in the estimated lives of certain assets resulting from planned facility closures are included in Cost of products sold. We recorded $2.8 million and $3.1 million for the three and nine months ended September 30, 2023 primarily to write down inventory to estimated net realizable value. There were no other restructuring related inventory adjustments for the three and nine months ended September 30, 2022. Other restructuring related charges are included in corporate General expense as other unallocated items as these costs are not included in management's evaluation of the segments' performance. There were no unallocated expenses included in corporate General expense in the three months ended September 30, 2023 and $1.1 million in the nine months ended September 30, 2023 related to the relocation of the corporate headquarters. Unallocated restructuring and other impairment expense for the three and nine months ended September 30, 2022 included $0.8 million related to the modification of leases resulting from the Merger. The following table summarizes total restructuring, restructuring related, and other impairment expense (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Restructuring and other impairment expense: |  |  |  |  |  |  |
Severance | $ | — |  |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 1.5 |
Asset impairment | 15.0 |  |  | 0.8 |  |  | 15.0 |  |  | 13.7 |
Other | 1.3 |  |  | 0.7 |  |  | 2.5 |  |  | 2.1 |
Total restructuring and other impairment expense | $ | 16.3 |  |  | $ | 1.8 |  |  | $ | 17.6 |  |  | $ | 17.3 |
Other restructuring related charges - Cost of products sold |  |  |  |  |  |  |
Accelerated depreciation and amortization | $ | — |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | — |
Inventory write-downs to estimated net realizable value | $ | 2.8 |  |  | $ | — |  |  | $ | 2.8 |  |  | — |
Total other restructuring related charges - Cost of products sold | 2.8 |  |  | — |  |  | 3.1 |  |  | — |
Other restructuring related charges - General expense |  |  |  |  |  |  |
Accelerated depreciation and amortization | — |  |  | — |  |  | 1.1 |  |  | — |
Total restructuring, restructuring related and other impairment expense | $ | 19.1 |  |  | $ | 1.8 |  |  | $ | 21.8 |  |  | $ | 17.3 |
The following table summarizes changes in restructuring liabilities (in millions):
|  | Nine Months Ended September 30,
|  | 2023 |  | 2022
Balance at beginning of period |  | $ | 4.0 |  |  | $ | 3.8 |
Accruals for announced programs |  | (0.2) |  |  | 0.3 |
Accruals assumed from Merger(1) |  | — |  |  | 2.3 |
Cash payments |  | (0.5) |  |  | (1.5) |
Foreign exchange impact |  | — |  |  | (0.1) |
Balance at end of period |  | $ | 3.3 |  |  | $ | 4.8 |
(1) Accrued liabilities primarily for severance related to an optimization program at facilities 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 -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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