Restructuring, Business Transformation and Other Cost Saving Initiatives

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring, Business Transformation and Other Cost Saving Initiatives

2023 Cost Saving Initiatives

In 2023 we initiated additional cost saving measures as part of our Fit for Growth initiative to reduce operating costs, while improving efficiency and effectiveness.

Total charges incurred from our 2023 cost saving initiatives are summarized as follows:

	For the Three Months Ended June 30, 2023						For the Six Months Ended June 30, 2023
(In millions)	Severance Costs		Accelerated Depreciation and Other Costs		Total		Severance Costs		Accumulated Depreciation and Other Costs		Total
Selling, general and administrative	$	—	$	11.5	$	11.5	$	—	$	11.5	$	11.5
Research and development	—		0.5		0.5		—		0.5		0.5
Restructuring charges	17.8		16.5		34.3		24.9		16.5		41.4
Total charges	$	17.8	$	28.5	$	46.3	$	24.9	$	28.5	$	53.4

Other Costs: includes costs associated with items such as asset abandonment and write-offs, facility closure costs, pretax gains and losses resulting from the termination of certain leases, employee non-severance expense, consulting fees and other costs.

2022 Cost Saving Initiatives

In December 2021 and May 2022 we announced our plans to implement a series of cost-reduction measures during 2022. These savings are being achieved through a number of initiatives, including reductions to our workforce, the substantial elimination of our commercial ADUHELM infrastructure, deprioritization of certain research and development programs, the consolidation of certain real estate locations and operating efficiencies across our selling, general and administrative and research and development functions. Charges related to our 2022 cost saving initiatives were substantially incurred during 2022 with remaining payments expected to be made through 2026.

Total charges incurred from our 2022 cost saving initiatives are summarized as follows:

	For the Three Months Ended June 30,
	2023						2022
(In millions)	Severance Costs		Accelerated Depreciation and Other Costs		Total		Severance Costs		Accumulated Depreciation and Other Costs		Total
Restructuring charges	$	—	$	0.1	$	0.1	$	60.9	$	9.7	$	70.6
Total charges	$	—	$	0.1	$	0.1	$	60.9	$	9.7	$	70.6
	For the Six Months Ended June 30,
	2023						2022
(In millions)	Severance Costs		Accelerated Depreciation and Other Costs		Total		Severance Costs		Accumulated Depreciation and Other Costs		Total
Restructuring charges	$	—	$	2.6	$	2.6	$	88.6	$	20.1	$	108.7
Total charges	$	—	$	2.6	$	2.6	$	88.6	$	20.1	$	108.7

Charges and spending related to our 2023 and 2022 workforce reductions are summarized as follows:

	Workforce Reductions
(In millions)	2023		2022
Restructuring reserve as of December 31	$	35.9	$	—
Expense	7.1		27.7
Payment	(15.6)		(6.2)
Foreign currency and other adjustments	0.6		—
Restructuring reserve as of March 31	28.0		21.5
Expense	17.8		60.9
Payment	(13.4)		(29.7)
Foreign currency and other adjustments	(0.1)		(0.5)
Restructuring reserve as of June 30	$	32.3	$	52.2