Restructuring and Other Charges, Net

6 Months Ended

Jun. 25, 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:

	Second Quarter Ended				Six Months Ended
	June 25,		June 26,		June 25,		June 26,
	2023		2022		2023		2022
	(in millions)
Restructuring costs:
2021 France Actions	$	—	$	1.3	$	—	$	2.3
Other Actions		1.6		0.4		1.3		0.4
Total restructuring charges	$	1.6	$	1.7	$	1.3	$	2.7

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

	Second Quarter Ended				Six Months Ended
	June 25,		June 26,		June 25,		June 26,
	2023		2022		2023		2022
	(in millions)
Americas	$	—	$	0.4	$	0.1	$	0.5
Europe		0.5		1.3		0.1		2.3
APMEA		1.1		—		1.1		(0.1)
Total	$	1.6	$	1.7	$	1.3	$	2.7

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 realized by 2023.

Details of the restructuring reserve activity for the Company’s 2021 France Actions for the period ended June 25, 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
Net pre-tax restructuring charges		—		—		—		—		—
Utilization and foreign currency impact		(0.7)		—		—		—		(0.7)
Balance at June 25, 2023	$	0.6	$	—	$	—	$	—	$	0.6

Other Actions

The Company periodically initiates other actions which are not part of a major program. Included in “Other Actions” for the period ended June 25, 2023, were primarily immaterial actions taken in the APMEA segment related to the Enware acquisition. In the second quarter ended June 25, 2023, $1.1 million of restructuring charges were recognized related to severance costs within the Enware restructuring program. The total program costs are estimated to be $2 million in restructuring charges and the remaining $0.9 million in other exit costs are expected to be incurred through the first quarter of 2024. Also included in “Other Actions” in the second quarter ended June 25, 2023 were immaterial cost saving actions in the Europe segment of $0.9 million related to severance and other costs. These costs were partially offset by $0.4 million of immaterial adjustments to reduce the previously estimated severance charges recognized for the cost saving actions in Europe in prior quarters.