Restructuring

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

4. Restructuring

2024 Restructuring Plan. During the quarter ended June 30, 2024, we initiated a plan to exit our soft alloy aluminum extrusion facility located in Sherman, Texas (“2024 Restructuring Plan”). Through September 30, 2024, we have recorded a charge of $7.5 million, consisting of a $4.6 million multiemployer pension obligation which is expected to be paid in 2027 and a $2.9 million charge for severance, related benefits, and other costs, to be substantially paid by December 31, 2024. As of September 30, 2024, the total estimated costs related to the 2024 Restructuring Plan are expected to range from $8.0 million to $10.0 million. The costs are recorded within Restructuring costs in our Statements of Consolidated Income.

The following table summarizes activity relating to the 2024 Restructuring Plan liabilities (in millions of dollars):

BALANCE, March 31, 2024	$	—
Restructuring costs		6.8
Costs paid or otherwise settled1		(0.6	)
BALANCE, June 30, 2024		6.2
Restructuring costs		0.7
Costs paid or otherwise settled1		(2.1	)
BALANCE, September 30, 2024	$	4.8

1.Cash paid during the quarters ended June 30, 2024 and September 30, 2024 was $0.6 million and $1.9 million, respectively.

2022 Restructuring Plan. During 2022, we relocated our corporate headquarters from Foothill Ranch, California (“Foothill Ranch”) to Franklin, Tennessee (“Franklin”). In conjunction with the relocation, we initiated a restructuring plan during the quarter ended December 31, 2022, which consisted primarily of employee retention benefits aimed at incentivizing Foothill Ranch employees to assist with the buildout of the new corporate function in Franklin (“2022 Restructuring Plan”). We incurred total restructuring costs of $7.4 million related to the 2022 Restructuring Plan, which consisted of employee-related costs and office rent within Restructuring costs in our Statements of Consolidated Income. We completed the 2022 Restructuring Plan as of June 30, 2024.

The following table summarizes activity relating to the 2022 Restructuring Plan liabilities (in millions of dollars):

BALANCE, December 31, 2023	$	1.2
Restructuring costs		0.1
Costs paid or otherwise settled1		(1.2	)
BALANCE, March 31, 2024		0.1
Restructuring costs		—
Costs paid or otherwise settled1		(0.1	)
BALANCE, June 30, 2024	$	—

1.Cash paid during the quarters ended March 31, 2024 and June 30, 2024 was $1.1 million and $0.1 million, respectively.