Restructuring and Transformation Programs

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Transformation Programs

Restructuring and Transformation Program

In 2021, we launched and committed resources to a program designed to accelerate growth and drive margin expansion through transformation of our business model to drive operational excellence, reduce complexity and streamline our processes (the “Transformation Program”). The Transformation Program is structured in multiple phases and is expected to empower us to work more efficiently and optimize our business to better serve our customers while meeting our financial objectives.

During the nine months ended September 30, 2022, we initiated and continued execution of restructuring actions aimed at reducing our fixed cost structure and realigning our business as well as certain initiatives associated with the Transformation Program. These actions included a reduction in hourly and salaried headcount of approximately 400 employees.

Restructuring and transformation-related costs within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included the following: 

	Three months ended				Nine months ended
In millions	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Restructuring Initiatives
Severance and related costs	$	8.5	$	—	$	11.2	$	5.1
Other restructuring costs (1)	2.4		—		2.6		0.2
Total restructuring costs	10.9		—		13.8		5.3
Transformation Program
Severance and related costs	3.1		—		3.1		—
Other transformation costs (2)	7.0		4.0		17.7		5.9
Total transformation costs	10.1		4.0		20.8		5.9
Total restructuring and transformation costs	$	21.0	$	4.0	$	34.6	$	11.2
(1) Other restructuring costs primarily consist of asset impairment and various contract termination costs.
(2) Other transformation costs primarily consist of professional services and project management and related costs.

Restructuring and transformation costs by reportable segment were as follows:

	Three months ended				Nine months ended
In millions	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Consumer Solutions	$	12.0	$	0.1	$	13.8	$	0.8
Industrial & Flow Technologies	0.3		(0.2)		1.5		0.3
Other	8.7		4.1		19.3		10.1
Consolidated	$	21.0	$	4.0	$	34.6	$	11.2

Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the nine months ended September 30, 2022: 

In millions	September 30, 2022
Beginning balance	$	10.7
Costs incurred	14.3
Cash payments and other	(6.1)
Ending balance	$	18.9