Restructuring and Other Charges, Net

12 Months Ended

Dec. 31, 2024

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

(3) 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 that 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:

	Years Ended December 31,
	2024		2023		2022
	(in millions)
Restructuring costs:
2021 France Actions	$	—	$	0.4	$	5.1
Other Actions		7.2		5.1		5.5
Total restructuring charges	$	7.2	$	5.5	$	10.6

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

	Years Ended December 31,
	2024		2023		2022
	(in millions)
Americas	$	2.1	$	2.5	$	2.2
Europe		4.5		2.0		8.5
APMEA		0.6		1.0		(0.1)
Total	$	7.2	$	5.5	$	10.6

Other Actions

The Company periodically initiates other actions that are not part of a major program. Included in “Other Actions” for the year ended December 31, 2024, were immaterial actions taken across all segments related to cost reductions actions. Also included in “Other Actions” in the Americas were the final costs related to a facility exit program approved in 2023. The program was completed in the first half of 2024 with the sale of the facility, which generated cash proceeds of $4.6 million and a gain on sale of $3.3 million. Restructuring costs primarily include severance charges related to headcount reductions across all segments and facility exit related costs in the Americas.

Included in “Other Actions” for the year ended December 31, 2023, were immaterial actions primarily taken in the Americas segment related to the approved closure of two facilities and consolidation of the related productions into existing facilities. The facility exits were substantially completed in the fourth quarter of 2023, with one facility exit completed in the first half of 2024. Total facility exit costs approximated $2.0 million. Also included in “Other Actions” for the Americas segment was $0.6 million of severance related to head count and cost reductions actions which took place in the first half of 2024.

Included in “Other Actions” for the year ended December 31, 2023, was $1.6 million of restructuring charges recognized in the Europe segment related to cost saving actions and primarily include severance costs.

Included in “Other Actions” for the year ended December 31, 2023, was $1.1 million of restructuring charges recognized in the APMEA segment related to Enware Australia Pty Ltd (“Enware”) acquisition primarily for severance costs within the Enware restructuring program. The total program costs were estimated to be $1.5 million in restructuring charges, of which the remaining $0.4 million was recognized in 2024.

Included in “Other Actions” for the year ended December 31, 2022, was $3.2 million and $0.9 million of restructuring charges associated with cost saving actions in the Europe and Americas segments, respectively, and related to severance and other costs; and $1.4 million of facility exit charges were recognized associated with the decommissioning of machinery at one of the Company’s facilities in the Americas.

2021 France Restructuring 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, 2023, the Company had incurred all pre-tax restructuring charges related to the program, resulting in total program charges of $25.2 million, of which $20.8 million related to severance costs, $1.1 million related to legal and consultancy costs and $3.3 million related to accelerated depreciation and facility exit costs. As of December 31, 2024 all reserves related to these charges have been settled. Total net after-tax charges for this restructuring program were approximately $18.6 million. In the fourth quarter of 2022, the Company received cash proceeds from the sale of the manufacturing facility of approximately $4.3 million and recognized a pre-tax gain on sale of approximately $1.8 million. Annual cash savings, net of tax, approximated $3.0 million, and were fully realized in 2023.