Restructuring Activities

12 Months Ended

Mar. 31, 2022

Restructuring Activities [Abstract]

Restructuring Activities

Note 6:  Restructuring Activities

During fiscal 2022,  the Company committed to restructuring actions intended to reduce SG&A and operational expenses, particularly within the Automotive segment.  During fiscal 2022, the Company recorded $22.1 million of severance expenses, most of which related to the recently-announced restructuring program.  The majority of the severance expenses, $19.9 million, were recorded in the Automotive segment and primarily relate to targeted headcount reductions in Europe.  In addition, the Company implemented targeted headcount reductions in the CIS, HDE, and BHVAC segments.  Also in fiscal 2022, the Company incurred equipment transfer costs within the HDE segment.

During fiscal 2021 and 2020, restructuring actions consisted primarily of targeted headcount reductions and plant consolidation activities.  The headcount reductions were primarily in Europe within the Automotive segment and in the Americas within the HDE segment and supported the Company’s objective of reducing operational and SG&A cost structures.  During fiscal 2021, the Company transferred production from its manufacturing facility in Zhongshan, China to another CIS segment manufacturing facility in China.  As a result of this plant consolidation, the Company recorded $3.7 million of severance expenses during fiscal 2021.  Other plant consolidation activities in fiscal 2021 and 2020 included transferring product lines to the Company’s CIS manufacturing facility in Mexico.

Restructuring and repositioning expenses were as follows:

	Years ended March 31,
	2022		2021		2020
Employee severance and related benefits	$	22.1	$	11.7	$	10.2
Other restructuring and repositioning expenses		2.0		1.7		2.0
Total	$	24.1	$	13.4	$	12.2

Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements.  Changes in accrued severance were as follows:

	Years ended March 31,
	2022			2021
Beginning balance	$	4.0		$	5.0
Additions		22.1			11.7
Payments		(5.7	)		(10.5	)
Reclassified from (to) held for sale		0.4			(2.5	)
Effect of exchange rate changes		(0.6	)		0.3
Ending balance	$	20.2		$	4.0

During fiscal 2022 and 2021, the Company recorded $56.0 million of net asset impairment reversals and $166.8 million of impairment charges, respectively, within its Automotive segment.  See Note 2 for additional information.

Also during fiscal 2022, the Company recorded an impairment charge of $0.3 million to reduce the carrying value of a previously closed CIS facility to its estimated fair value, less costs to sell.

During fiscal 2020, the Company recorded asset impairment charges totaling $7.5 million within its Automotive segment to write down property and equipment assets in Austria and Germany to estimated fair value.  Also during fiscal 2020, the Company recorded a $0.6 million impairment charge to reduce the carrying value of a previously-closed CIS Austrian facility to its estimated fair value, less costs to sell.