XML 58 R12.htm IDEA: XBRL DOCUMENT
v3.23.2

Restructuring and impairment costs | 6 Months Ended
--- | ---
Jun. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and impairment costs | Restructuring and impairment charges Impairment of long-lived assets The Company tests its long-lived assets that are held and used for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. During the preparation of our financial statements for the three months ended June 30, 2023, due to deterioration in performance and resulting downward revisions to our internal CDMO forecast made during the second quarter, including future expected cash flows, the Company determined there were sufficient indicators of impairment on certain asset groups within the CDMO reporting unit to require an impairment analysis. As a result, the Company performed recoverability tests on certain asset groups within the CDMO reporting unit and concluded that the impacted asset groups were not recoverable as the undiscounted expected cash flows did not exceed their carrying values. Asset groups are written down only to the extent that their carrying value is higher than their respective fair value. The Company, with the assistance of a third-party valuation firm, applied valuation methods to estimate the fair values for each of the assets within the different asset classes. An orderly liquidation value was applied to estimate the fair value of the personal property assets and market and cost based approaches were applied to estimate the fair value of the real property assets, each representing Level 3 non-recurring fair value measurements. Based on this analysis, the Company allocated and recognized a non-cash impairment charge of $306.7 million during the three months ended June 30, 2023. The table below presents the total impairment charge by asset class for the three months ended June 30, 2023:
| Three Months Ended June 30, 2023
Buildings, building improvements and leasehold improvements | $ | 81.5 |
Furniture and equipment | 117.5 |
Software | 0.3 |
Construction-in-progress | 107.4 |
Total impairment on long-lived assets | $ | 306.7 |
January 2023 Organizational Restructuring Plan In January 2023, the Company initiated an organizational restructuring plan (the “January 2023 Plan”) intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. As part of the January 2023 Plan, the Company eliminated approximately five percent of its total headcount. The Company made a $(0.1) million adjustment to the incurred charges in connection with the January 2023 Plan during the three months ended June 30, 2023 and incurred approximately $9.6 million in charges during the six months ended June 30, 2023. These charges consist primarily of charges related to employee transition, severance payments and employee benefits. All activities related to the January 2023 Plan were substantially completed during the first quarter of 2023. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company's classification policy for each category of operating expense. The following table presents the total restructuring costs associated with the Company’s segments as well as unallocated corporate and research and development ("R&D") charges for the three and six months ended June 30, 2023:
| Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023
Products | $ | — |  |  | $ | 2.0 |
Services | — |  |  | — |
Total restructuring costs by segment | — |  |  | 2.0 |
Corporate | 0.1 |  |  | 5.1 |
R&D | $ | (0.2) |  |  | 2.5 |
Total restructuring costs | $ | (0.1) |  |  | $ | 9.6 |
The following table presents the total restructuring costs, by function, for the three and six months ended June 30, 2023:
| Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023
Employee transition | $ | — |  |  | $ | 0.3 |
Severance payments | 0.1 |  |  | 8.8 |
Employee benefits | (0.2) |  |  | 0.5 |
Total restructuring costs | $ | (0.1) |  |  | $ | 9.6 |
The following table provides the components of and changes in the Company's restructuring accrual during the three and six months ended June 30, 2023:
| Employee Transition |  | Severance Payments |  | Employee Benefits |  | Total
Balance at December 31, 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accruals | 0.3 |  |  | 8.7 |  |  | 0.7 |  |  | 9.7 |
Cash payments | (0.2) |  |  | (2.0) |  |  | (0.1) |  |  | (2.3) |
Balance at March 31, 2023 | $ | 0.1 |  |  | $ | 6.7 |  |  | $ | 0.6 |  |  | $ | 7.4 |
Accruals | — |  |  | 0.1 |  |  | (0.2) |  |  | (0.1) |
Cash payments | — |  |  | (3.6) |  |  | (0.1) |  |  | (3.7) |
Balance at June 30, 2023 | $ | 0.1 |  |  | $ | 3.2 |  |  | $ | 0.3 |  |  | $ | 3.6 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration