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Strategic Transformation, Restructuring and Other Asset Gains and Charges
 6 Months Ended
Jun. 30, 2024
Restructuring, Settlement and Impairment Provisions [Abstract]  
Strategic Transformation, Restructuring, Impairment and Other Asset Charges, net Strategic Transformation, Restructuring, Impairment and Other Asset Charges, net
The Company's strategic transformation program includes the ongoing multi-year phased implementation of a standardized enterprise resource planning ("ERP"), which is replacing much of the existing disparate core financial systems. The upgraded ERP will initially convert internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. An implementation of this scale is a major financial undertaking and requires substantial time and attention of management and key employees.

In addition, a lean manufacturing initiative at one of the Company's largest sites was largely completed during 2023 with certain capital investments finalized in early 2024.

Capitalized implementation costs associated with the ERP implementation totaled $33.8 million, of which $3.8 million and $30.0 million were included in "Prepaid expenses and other assets" and "Other long-term assets," respectively, in the Consolidated Balance Sheets as of June 30, 2024. Capitalized implementation costs totaled $30.6 million, of which $3.3 million and $27.3 million were included in "Prepaid expenses and other assets" and "Other long-term assets," respectively, in the Consolidated Balance Sheets as of December 31, 2023.
Costs associated with these strategic transformation programs are presented below:

Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Strategic transformation programs
Selling, general and administrative expenses
$11.0 $7.7 $17.4 $14.9 
Cost of sales
0.2 0.1 0.3 0.1 
Total costs related to strategic transformation initiatives$11.2 $7.8 $17.7 $15.0 
Amortization of capitalized implementation costs (a)
$1.0 $0.4 $1.7 $0.5 
(a) Amortization of capitalized implementation costs is recorded in "Selling, general and administrative expenses" in the Consolidated Statement of Operations.

In addition, the Company periodically sells or disposes of its assets in the normal course of its business operations as they are no longer needed or used and may incur gains or losses on these disposals. The Company reports asset impairment charges, excluding goodwill impairment, and gains or losses on the sales of property and equipment collectively, with restructuring charges in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations to the extent they are experienced.

Restructuring, asset impairment charges and the net gain on sale of property and equipment are presented below:

Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Restructuring charges:
Workforce reductions$0.9 $— $0.9 $— 
Costs associated with leadership change and overhead restructuring — 0.3 — 7.3 
Costs associated with exited operations – Enid— 0.1 0.1 0.2 
Total restructuring related charges0.9 0.4 1.0 7.5 
Asset impairment charges:
Other impairment charges— 0.8 — 0.8 
Total asset impairment charges— 0.8 — 0.8 
Gain on sale of property and equipment, net:
Gain on sale of property and equipment, net(0.2)(0.1)(1.1)(3.5)
Total gain on sale of property and equipment, net(0.2)(0.1)(1.1)(3.5)
Restructuring, other impairment and asset charges, net$0.7 $1.1 $(0.1)$4.8 

Restructuring charges by segment are as follows:

Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Infrastructure Solutions$0.4 $— $0.5 $1.0 
Materials Solutions0.3 0.1 0.3 0.1 
Corporate and Other0.2 0.3 0.2 6.4 
Total restructuring related charges$0.9 $0.4 $1.0 $7.5 
Asset impairment charges by segment are as follows:

Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Corporate and Other$— $0.8 $— $0.8 
Total asset impairment charges$— $0.8 $— $0.8 

Net gains on sale of property and equipment by segment are as follows:

Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Infrastructure Solutions$(0.2)$— $(0.3)$(3.4)
Materials Solutions— — (0.8)— 
Corporate and Other— (0.1)— (0.1)
Total gain on sale of property and equipment, net$(0.2)$(0.1)$(1.1)$(3.5)

In January 2021, the Company announced plans to close the Tacoma, Washington facility in order to simplify and consolidate operations within the Infrastructure Solutions segment. The sale of the Tacoma facility's land, building and certain equipment assets was completed in the first quarter of 2023 for $19.9 million. The Company recorded a gain on the sale of $3.4 million, which was recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations.

Effective as of January 6, 2023, Mr. Barry A. Ruffalo's employment as President and CEO was terminated. In connection with his separation, the Company entered into an agreement with Mr. Ruffalo (the "Separation Agreement"), pursuant to which Mr. Ruffalo was entitled to certain severance payments and benefits. During the first quarter of 2023, $1.8 million of restructuring costs, related to the modification of Mr. Ruffalo's equity awards and other third-party transition support costs, were recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. The related recovery of $1.6 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations during the first quarter of 2023. The Separation Agreement also included a release and waiver by Mr. Ruffalo and other customary provisions.

Management continually reviews the Company's organizational structure and operations to ensure they are optimized and aligned with achieving near-term and long-term operational and profitability targets. In connection with this review, the Company effected workforce reductions during the second quarter of 2024, whereby charges of $0.9 million were incurred during the three months ended June 30, 2024 and recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. In February 2023, the Company implemented a limited restructuring plan to right-size and reduce the fixed cost structure of certain overhead departments. Charges of $0.3 million and $5.5 million for employee termination costs, including equity award modifications, were incurred in three and six months ended June 30, 2023, respectively, and recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. The related recovery of $0.2 million and $1.0 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations during the three and six months ended June 30, 2023, respectively.

Asset impairment charges of $0.8 million were incurred related to abandoned in-process internally developed software that was determined to be impaired during the second quarter of 2023.