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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net Strategic Transformation and 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.

Net capitalized implementation costs associated with the ERP implementation totaled $31.9 million, of which $3.7 million and $28.2 million were included in "Prepaid expenses and other assets" and "Other long-term assets", respectively, in the Consolidated Balance Sheets as of December 31, 2024. Net 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. Accumulated amortization associated with these capitalized implementation costs totaled $5.5 million and $1.9 million as of December 31, 2024 and 2023, respectively.

Costs associated with these strategic transformation programs are presented below:

Years Ended December 31,
(in millions)202420232022
Strategic transformation programs
Selling, general and administrative expenses$33.0 $29.4 $25.5 
Cost of sales0.5 0.3 — 
Total costs related to strategic transformation initiatives$33.5 $29.7 $25.5 
Amortization of capitalized implementation costs (1)
$3.6 $1.9 $— 
(1) Amortization of capitalized implementation costs is recorded in "Selling, general and administrative expenses" in the Consolidated Statements 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. Certain of the costs associated with these decisions are separately identified as restructuring. The Company reports asset impairment charges and gains or losses on the sales of property and equipment collectively, with restructuring charges in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations to the extent they are experienced.

Restructuring, impairment and other asset charges, net incurred in 2024, 2023 and 2022 are as follows:

Years Ended December 31,
(in millions)202420232022
Restructuring related charges:
Costs associated with exited operations – Enid$8.6 $0.4 $1.0 
Workforce reductions0.9 — — 
Costs associated with leadership change and overhead restructuring — 7.3 4.4 
Costs associated with closing Tacoma— — 0.8 
Total restructuring related charges9.5 7.7 6.2 
Asset impairment charges:
Other impairment charges— 1.2 3.5 
Total asset impairment charges— 1.2 3.5 
Gain on sale of property and equipment, net:
Gain on sale of property and equipment, net(1.1)(3.1)(0.7)
Total gain on sale of property and equipment, net(1.1)(3.1)(0.7)
Restructuring, impairment and other asset charges, net$8.4 $5.8 $9.0 
Restructuring charges by reportable segment and the Corporate and Other category are as follows:

Years Ended December 31,
(in millions)202420232022
Infrastructure Solutions$9.0 $0.5 $1.8 
Materials Solutions0.3 — — 
Corporate and Other0.2 7.2 4.4 
Total restructuring related charges$9.5 $7.7 $6.2 

Impairment charges by reportable segment and the Corporate and Other category are as follows:

Years Ended December 31,
(in millions)202420232022
Infrastructure Solutions$— $0.4 $2.5 
Corporate and Other— 0.8 1.0 
Total impairment charges$— $1.2 $3.5 

The net gain on sale of property and equipment by reportable segment are as follows:

Years Ended December 31,
(in millions)202420232022
Infrastructure Solutions$(0.3)$(3.1)$(0.7)
Materials Solutions(0.8)— — 
Total gain on sale of property and equipment, net$(1.1)$(3.1)$(0.7)

In late 2019, the oil and gas drilling product lines produced at the Company's Enid, Oklahoma location formally included in the Company's Infrastructure Solutions segment, were impaired and discontinued. The sale of the land and building assets was completed in the fourth quarter of 2022 for approximately $4.7 million.

On October 8, 2024, the Company reached an agreement to resolve the action styled VenVer S.A. and Americas Coil Tubing LLP v. GEFCO, Inc., related to Enid for $8.4 million. In connection with the settlement, management recorded a loss of $8.4 million in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations and "Other current liabilities" in the Consolidated Balance Sheets during the third quarter of 2024. See Note 16, Commitments and Contingencies for further discussion of this matter.

In January 2021, the Company announced plans to close the Tacoma facility in order to simplify and consolidate operations. The transfer of the manufacturing and marketing of Tacoma product lines to other facilities within the Infrastructure Solutions segment was completed during the first quarter of 2022. In conjunction with this action, the Company recorded $0.8 million of restructuring related charges during 2022, in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. The Company completed the sale of the Tacoma facility's land, building and certain equipment assets 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, impairment and other asset charges, net" in the Consolidated Statements of Operations.

During the second quarter of 2022, the Company determined that certain manufacturing equipment contracted to be constructed by a third-party vendor for a site within the Infrastructure Solutions segment, which had been prepaid, would not be recovered. As such, impairment charges of $2.1 million were recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations during 2022.

Effective January 6, 2023, Mr. Barry A. Ruffalo's employment as President and Chief Executive Officer 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. There were $4.4 million of restructuring costs incurred related to Mr. Ruffalo's separation during the year ended December 21, 2022, with an additional $1.8 million of restructuring costs, related to the modification of Mr. Ruffalo's equity awards and other third-party transition support costs incurred in the year ended December 31, 2023, which were recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. The related recovery of $1.6 million of previously 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 includes 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. Total charges of $5.5 million for employee termination costs, including equity award modifications, were recorded in "Restructuring, other impairment and asset charges, net" in the Consolidated Statements of Operations. The related recovery of $1.0 million of previously incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.