Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

Restructuring charges primarily consist of employee separation benefits under existing severance programs, foreign statutory termination benefits, certain one-time termination benefits, contract termination costs, asset impairment charges and other costs that are associated with restructuring actions. Certain restructuring charges are accrued prior to payments made in accordance with applicable guidance. For such charges, the amounts are determined based on estimates prepared at the time the restructuring actions were approved by management. Inventory write offs due to restructuring are reported in Cost of products and are included in each segment's operating profit given the nature of the item. All other restructuring charges that are reported as Restructuring expenses are excluded from the calculation of each segment's operating profit.

In the third quarter of 2022, the Company implemented a restructuring plan (the "2022/2023 restructuring plan") to optimize the overall FoodTech cost structure on a global basis. The initiatives under this plan will include streamlining operations and enhancing our general and administrative infrastructure. As of March 31, 2023, the Company recognized restructuring charges of $6.0 million, net of a cumulative release of the related liability of $1.3 million. The total estimated cost, net release of liability in connection with this plan is in the range of $8.0 million to $10.0 million expected to be recognized by the end of 2023.

The following table details the cumulative restructuring charges reported in operating income for the 2022/2023 restructuring plan since the implementation of this plan:  

	Cumulative Amount		As of the Quarter Ended		Cumulative Amount
(In millions)	Balance as of December 31, 2022		March 31, 2023		Balance as of March 31, 2023
2022/2023 restructuring plan
Severance and related expense	$	5.4	$	0.6	$	6.0
Total Restructuring charges, net release of liability	$	5.4	$	0.6	$	6.0

Restructuring charges, net of related release of liability, is reported in restructuring expense within the Consolidated Statements of Income. Liability balances for restructuring activities are included in other current liabilities in the accompanying Balance Sheets. The table below details the activities in 2023:

			Impact to Earnings
(In millions)	Balance as of December 31, 2022		Charged to Earnings		Releases		Cash Payments		Balance as of March 31, 2023
2022/2023 restructuring plan
Severance and related expense	$	4.3	$	1.6	$	(1.0)	$	(1.1)	$	3.8
Total	$	4.3	$	1.6	$	(1.0)	$	(1.1)	$	3.8

The Company released $1.0 million of the liability during the three months ended March 31, 2023, which it no longer expects to pay in connection with the restructuring plans due to actual severance payments differing from the original estimates and natural attrition of employees.