Restructuring Activities

6 Months Ended

Sep. 30, 2024

Restructuring Activities

Restructuring Activities

Note 7: Restructuring Activities

During the first six months of fiscal 2025, restructuring and repositioning expenses primarily consisted of severance expenses recorded in the Performance Technologies segment. These severance charges were primarily recorded in Europe and include severance related to the closure of a technical service center and other targeted headcount reductions. In addition, as part of its transformational initiatives supported by 80/20 principles, the Company is taking steps to optimize the efficiency of its supply chain and manufacturing processes in order to improve profit margins in the Climate Solutions and Performance Technologies segments. These restructuring activities have included transferring the production and warehousing for certain product lines among its facilities.

During the first six months of fiscal 2024, restructuring and repositioning expenses primarily consisted of equipment transfer costs in the Climate Solutions and Performance Technologies segments.

Restructuring and repositioning expenses were as follows:

	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Employee severance and related benefits	$	3.2	$	0.1	$	8.0	$	0.1
Other restructuring and repositioning expenses		1.3		0.4		1.9		0.4
Total	$	4.5	$	0.5	$	9.9	$	0.5

Other restructuring and repositioning expenses primarily consist of costs related to product line transfers.

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

	Three months ended September 30,
	2024		2023
Beginning balance	$	8.6	$	8.9
Additions		3.2		0.1
Payments		(4.1)		(3.1)
Reclassified as held for sale (a)		—		(2.5)
Effect of exchange rate changes		0.2		(0.2)
Ending balance	$	7.9	$	3.2
	Six months ended September 30,
	2024		2023
Beginning balance	$	13.0	$	10.6
Additions		8.0		0.1
Payments		(13.3)		(4.9)
Reclassified as held for sale (a)		—		(2.5)
Effect of exchange rate changes		0.2		(0.1)
Ending balance	$	7.9	$	3.2
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(a) The Company reclassified the assets and liabilities of three businesses based in Germany as held for sale on the September 30, 2023 balance sheet.  These businesses were subsequently sold in October 2023.  See Note 2 for additional information regarding the sale.