Restructuring and Impairment Activities

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Impairment ActivitiesThe Company incurred restructuring and impairment expense of $11.8 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively, and $26.2 million and $1.3 million for the six months ended June 30, 2024 and 2023, respectively.In January 2024, we announced an organizational realignment plan (the "Plan") that is expected to streamline organizational size and complexity and leverage business critical resources to enhance customer support and reduce overhead cost. Restructuring and impairment expenses related to the Plan were comprised primarily of severance charges. These charges were $3.0 million for the three months ended June 30, 2024, of which $0.5 million, $2.2 million and $0.3 million incurred within FAM, SAS and Unallocated, respectively, and were $15.7 million for the six months ended June 30, 2024, of which $2.9 million, $9.5 million and $3.3 million incurred within FAM, SAS and Unallocated, respectively. Restructuring activities associated with the Plan are expected to be completed during 2024 with additional costs, primarily within SAS, not expected to exceed $1.0 million.

Restructuring and impairment expenses in the FAM segment, excluding costs associated with the Plan were $0.8 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively and were attributable to facility closures announced in prior years.

Restructuring and impairment expenses in the FAM segment, excluding costs associated with the Plan were $1.6 million and $1.2 million for the six months ended June 30, 2024 and 2023, respectively and were attributable to facility closures announced in prior years. Through June 30, 2024 the Company has recognized accumulated restructuring and impairment charges of $5.2 million related to the facility closures. During the remainder of 2024, the Company expects to record additional restructuring costs in the FAM segment of $1.0 million to $1.5 million related to the closure of these facilities.

Restructuring and impairment expenses in the SAS segment, excluding costs associated with the Plan, were $8.0 million and none for the three months ended June 30, 2024 and 2023, respectively. Restructuring and impairment expense in the SAS segment for the three months ended June 30, 2024 included impairment charges of $7.2 million related to long-lived assets at our Eerbeek, Netherlands facility to reduce the carrying value of the assets to fair value using management estimates for future cash flows. The impairment assessment was performed after revising our long-term view on market conditions and profitability. The remaining restructuring and impairment expenses for the three months ended June 30, 2024 were related to a facility closure announced in a prior year.

Restructuring and impairment expenses in the SAS segment, excluding costs associated with the Plan, were $8.9 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively. Restructuring and impairment expenses for the six months ended June 30, 2024 included impairment charges of $7.2 million related to long-lived assets at our Eerbeek, Netherlands facility and $1.7 million related to a facility closure announced in a prior year. Through June 30, 2024, the Company recognized accumulated restructuring and impairment charges of $5.5 million related to this closed facility. During the remainder of 2024, the Company expects to record additional restructuring costs of $1.5 million to $2.0 million related to the closing of this facility.

There were no material Unallocated restructuring and impairment expenses, excluding costs associated with the Plan, for the six months ended June 30, 2024 and 2023.

Assets held for sale of $10.3 million and $10.5 million were included in Other current assets as of June 30, 2024 and 2023, respectively.

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Restructuring expense:
Severance and termination benefits	$	3.1	$	—	$	16.7	$	0.1

Other	1.5		0.5		2.3		1.2
Total restructuring expense	4.6		0.5		19.0		1.3
Impairment expense:
Asset impairment	7.2		—		7.2		—
Total impairment expense	7.2		—		7.2		—

Total restructuring and impairment expense	$	11.8	$	0.5	$	26.2	$	1.3

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



	2024		2023
Balance at beginning of the period	$	3.8	$	4.0
Charges for restructuring programs	19.0		1.3

Cash payments and other	(18.0)		(2.0)


Balance at June 30,	$	4.8	$	3.3

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