Restructuring and Other Charges, Net

9 Months Ended

Sep. 24, 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:

	Third Quarter Ended				Nine Months Ended
	September 24,		September 25,		September 24,		September 25,
	2023		2022		2023		2022
	(in millions)
Restructuring costs:
2021 France Actions	$	—	$	0.4	$	—	$	2.7
Other Actions		0.4		1.3		1.7		1.7
Total restructuring charges	$	0.4	$	1.7	$	1.7	$	4.4

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

	Third Quarter Ended				Nine Months Ended
	September 24,		September 25,		September 24,		September 25,
	2023		2022		2023		2022
	(in millions)
Americas	$	0.4	$	0.4	$	0.5	$	0.8
Europe		—		1.3		0.1		3.7
APMEA		—		—		1.1		(0.1)
Total	$	0.4	$	1.7	$	1.7	$	4.4

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 September 24, 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
Net pre-tax restructuring charges		—		—		—		—		—
Utilization and foreign currency impact		(0.5)		—		—		—		(0.5)
Balance at September 24, 2023	$	0.1	$	—	$	—	$	—	$	0.1

Other Actions

The Company periodically initiates other actions which are not part of a major program. Included in “Other Actions” for the third quarter ended September 24, 2023, were primarily immaterial actions taken in the Americas segment related to the approved closure of a facility and consolidation of the related production into an existing facility. The facility exit is expected to be completed in the fourth quarter of 2023 and includes total expected costs of $1.6 million, of which $0.6 million for severance and related costs were recognized in the third quarter ended September 24, 2023. The program includes the sale of the facility which is expected to be completed in the first half of 2024 and will generate cash proceeds and an expected gain on sale.

In the nine months ended September 24, 2023, $1.1 million of restructuring charges were recognized in the APMEA segment related to Enware acquisition primarily for 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.