Restructuring and Other Charges, Net

3 Months Ended

Mar. 26, 2023

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

5. Restructuring and Other Charges, Net

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period in which the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

A summary of the pre-tax cost by restructuring program is as follows:

	First Quarter Ended
	March 26,		March 27,
	2023		2022
	(in millions)
Restructuring costs:
2021 France Actions	$	—	$	1.0
Other Actions		(0.3)		—
Total restructuring charges	$	(0.3)	$	1.0

The Company recorded pre-tax restructuring costs in its business segments as follows:

	First Quarter Ended
	March 26,		March 27,
	2023		2022
	(in millions)
Americas	$	0.1	$	0.1
Europe		(0.4)		1.0
APMEA		—		(0.1)
Total	$	(0.3)	$	1.0

2021 France Actions

On June 25, 2021, the Board of Directors approved a restructuring program with respect to the Company’s operating facilities in France, within its Europe operating segment. The restructuring program included the shutdown of the Company’s manufacturing facility in Méry, France and the consolidation of that facility’s operations primarily into the Company’s facilities in Virey-le-Grand and Hautvillers, France. As of December 31, 2022, the Company had incurred all pre-tax restructuring charges related to the program, resulting in total program charges of $24.8 million. Total net after-tax charges for this restructuring program were approximately $18.4 million. Annual cash savings, net of tax, approximated $3.0 million, and were fully realize by 2023.

Details of the restructuring reserve activity for the Company’s 2021 France Actions for the period ended March 26, 2023 are as follows:

							Facility
			Legal and		Asset		exit
	Severance		consultancy		write-downs		and other		Total
	(in millions)
Balance at December 31, 2022	$	1.9	$	—	$	—	$	—	$	1.9
Net pre-tax restructuring charges		—		—		—		—		—
Utilization and foreign currency impact		(0.6)		—		—		—		(0.6)
Balance at March 26, 2023	$	1.3	$	—	$	—	$	—	$	1.3

Other Actions

The Company periodically initiates other actions which are not part of a major program. Included in “Other Actions” for the period ended March 26, 2023, were immaterial adjustments to reduce the previously estimated restructuring charges recognized for the cost saving actions in Europe and related to severance and other costs; and $0.1 million of facility exit charges were recognized associated with the decommissioning of machinery at one of the Company’s facilities in the Americas.