Restructuring, Impairment and Transaction-Related Charges

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Transaction-Related Charges

The Company recorded restructuring, impairment and transaction-related charges for the years ended December 31, 2021 and 2020, as follows:


	2021		2020
Employee termination charges	$	9.9	$	34.7
Impairment charges	34.9		64.1
Transaction-related charges	0.6		1.4
Integration costs	—		1.9
Other restructuring charges	(26.5)		22.0
Total	$	18.9	$	124.1

The costs related to these activities have been recorded on the consolidated statements of operations as restructuring, impairment and transaction-related charges. See Note 21, “Segment Information,” for restructuring, impairment and transaction-related charges by segment.

Restructuring Charges

The Company began a restructuring program in 2010 related to eliminating excess manufacturing capacity and properly aligning its cost structure. The Company classifies the following charges as restructuring:

•Employee termination charges are incurred when the Company reduces its workforce through facility consolidations and separation programs.

•Integration costs are incurred primarily for the integration of acquired companies.

•Other restructuring charges (income) are comprised of the following components and are presented net of any gains on the sale of facilities and businesses. During the year ended December 31, 2021, the Company recognized gains from the sale of the facilities located in Riverside, California, Oklahoma City, Oklahoma, and Fernley, Nevada. During the year ended December 31, 2020, the Company recognized gains from the sale of the facilities located in Midland, Michigan and Shakopee, Minnesota. The Company also recognized a $20.9 million gain on the sale of a business and a $2.7 million gain from the reclassification of foreign currency translation adjustments during the year ended December 31, 2021, and a $2.9 million loss on the sale of a business during the year ended December 31, 2020, which are included within other restructuring activities below. The components of other restructuring charges (income) consisted of the following during the years ended December 31, 2021 and 2020:


	Year Ended December 31,
	2021		2020
Vacant facility carrying costs and lease exit charges	$	19.8	$	11.5
Equipment and infrastructure removal costs	1.6		1.1
Gains on the sale of facilities	(24.8)		(1.6)
Other restructuring activities	(23.1)		11.0
Other restructuring charges (income)	$	(26.5)	$	22.0

The restructuring charges recorded were based on plans that have been committed to by management and were, in part, based upon management’s best estimates of future events. Changes to the estimates may require future restructuring charges and adjustments to the restructuring liabilities. The Company expects to incur additional restructuring charges related to these and other initiatives.

Impairment Charges

The Company recognized impairment charges of $34.9 million during the year ended December 31, 2021, which consisted of $2.8 million, for machinery and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction and strategic divestiture activities, including $32.1 million of impairment charges related to the Company’s investment in Plural.

The Company recognized impairment charges of $64.1 million during the year ended December 31, 2020, which consisted of $22.1 million of impairment charges primarily for machinery and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction and strategic divestiture activities; and $42.0 million of land and building impairment charges.

The fair values of the impaired assets were determined by the Company to be Level 3 under the fair value hierarchy (see Note 15, “Financial Instruments and Fair Value Measurements,” for the definition of Level 3 inputs) and were estimated based on broker quotes, internal expertise related to current marketplace conditions and estimated future discounted cash flows. These assets were adjusted to their estimated fair values at the time of impairment. If estimated fair values subsequently decline, the carrying values of the assets are adjusted accordingly.

Transaction-Related Charges

The Company incurs transaction-related charges primarily consisting of professional service fees related to business acquisition and divestiture activities. The Company recognized transaction-related charges of $0.6 million and $1.4 million during the years ended December 31, 2021 and 2020, respectively.

Restructuring Reserves

Activity impacting the Company’s restructuring reserves for the years ended December 31, 2021 and 2020, was as follows:


	Employee Termination Charges		Impairment Charges		Transaction-Related Charges (Income)		Integration Costs		Other Restructuring Charges		Total
Balance at January 1, 2020	$	9.9	$	—	$	0.8	$	0.2	$	13.6	$	24.5
Expense, net	34.7		64.1		1.4		1.9		22.0		124.1
Cash payments, net	(29.7)		—		(1.7)		(2.1)		(10.5)		(44.0)
Non-cash adjustments/reclassifications	(0.3)		(64.1)		—		—		0.7		(63.7)
Balance at December 31, 2020	$	14.6	$	—	$	0.5	$	—	$	25.8	$	40.9
Expense (income), net	9.9		34.9		0.6		—		(26.5)		18.9
Cash payments, net	(19.0)		—		(0.7)		—		(13.3)		(33.0)
Non-cash adjustments/reclassifications	(0.8)		(34.9)		—		—		64.2		28.5
Balance at December 31, 2021	$	4.7	$	—	$	0.4	$	—	$	50.2	$	55.3

The Company’s restructuring reserves at December 31, 2021, included a short-term and a long-term component. The short-term portion included $47.5 million in other current liabilities (see Note 10, “Other Current and Long-Term Liabilities”) and $1.7 million in accounts payable in the consolidated balance sheets as the Company expects these reserves to be settled within the next twelve months. The long-term portion of $6.1 million was included in other long-term liabilities (see Note 10, “Other Current and Long-Term Liabilities”) in the consolidated balance sheets.