Restructuring and Related Charges

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]


5.			Restructuring and Related Charges

During fiscal 2021 and 2018, the Company launched restructuring programs designed to improve its cost structure, neither of which has a specified time period. Charges of $50.0 million to $100.0 million were provided for under the 2021 program and $100.0 million to $125.0 million were provided for under the 2018 program. The 2021 program will commence upon substantial completion of the 2018 program, and has not commenced as of September 30, 2022 (Successor). In addition to the aforementioned restructuring programs, the Company has taken restructuring actions to generate synergies from its acquisitions.

Net restructuring and related charges by segment were as follows:



	Successor		Predecessor
	Three Months Ended September 30, 2022		Three Months Ended September 24, 2021
Specialty Brands	$	—	$	0.1
Specialty Generics	(0.2)		—
Corporate	2.4		11.6
Restructuring and related charges, net	2.2		11.7
Less: accelerated depreciation	—		(0.7)
Restructuring charges, net	$	2.2	$	11.0


	Successor		Predecessor
	Period from June 17, 2022 through September 30, 2022		Period from January 1, 2022 through June 16, 2022		Nine Months Ended September 24, 2021
Specialty Brands	$	—	$	—	$	0.1
Specialty Generics	(0.2)		3.5		—
Corporate	3.5		6.1		19.4
Restructuring and related charges, net	3.3		9.6		19.5
Less: accelerated deprecation	—		—		(2.0)
Restructuring charges, net	$	3.3	$	9.6	$	17.5

Net restructuring and related charges by program were comprised of the following:



	Successor		Predecessor
	Three Months Ended September 30, 2022		Three Months Ended September 24, 2021
2018 Program	$	2.2	$	11.7


Less: non-cash charges, including accelerated depreciation	(0.7)		(1.7)
Total charges expected to be settled in cash	$	1.5	$	10.0


	Successor		Predecessor
	Period from June 17, 2022 through September 30, 2022		Period from January 1, 2022 through June 16, 2022		Nine Months Ended September 24, 2021
2018 Program	$	3.3	$	9.6	$	19.5


Less: non-cash charges, including accelerated depreciation	(0.9)		(3.6)		(4.3)
Total charges expected to be settled in cash	$	2.4	$	6.0	$	15.2

The following table summarizes cash activity for restructuring reserves for the 2018 Program, which primarily related to employee severance and benefits:



Balance as of December 31, 2021 (Predecessor)	$	10.9
Charges	7.1
Changes in estimate	(1.1)
Cash payments	(15.9)


Balance as of June 16, 2022 (Predecessor)	$	1.0


Balance as of June 17, 2022 (Successor)	$	1.0
Charges	2.6
Changes in estimate	(0.2)
Cash payments	(1.6)
Balance as of September 30, 2022 (Successor)	$	1.8

As of September 30, 2022 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows:


	Successor		Predecessor

Specialty Brands	$	—	$	3.1
Specialty Generics	(0.2)		18.5
Corporate	3.5		84.0
	$	3.3	$	105.6

All of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets. Amounts paid in the future may differ from the amount currently recorded.