Quarterly report pursuant to Section 13 or 15(d)

Restructuring, Exit and Integration Activities

v3.23.2
Restructuring, Exit and Integration Activities
Apr. 01, 2023
Restructuring and Related Activities [Abstract]  
Restructuring, Exit and Integration Activities [Text Block] Restructuring, Exit and Impairment Activities
The Company recorded restructuring, exit and impairment charges in the Condensed Consolidated Statements of Comprehensive Income in 2023.

During the three and six months ended July 1, 2023, the Company recorded restructuring charges within the Engine P&A, Navico Group, Boat and Corporate segments related to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies. The Company estimates approximately $25 million of charges will be incurred related to these actions during 2023. The Company estimates these actions will result in approximately $30 million to $35 million of annualized cost savings.

The following table is a summary of these expenses for the three months ended July 1, 2023:
(in millions) Engine P&A Navico Group Boat Corporate Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 0.3  $ 7.1  $ 4.5  $ —  $ 11.9 
Asset-related —  0.2  —  —  0.2 
Professional fees —  —  —  1.8  1.8 
Total restructuring, exit and impairment charges $ 0.3  $ 7.3  $ 4.5  $ 1.8  $ 13.9 
Total cash payments for restructuring, exit and impairment charges (A)
$ 0.3  $ 4.0  $ 4.0  $ 3.3  $ 11.6 
Accrued charges at end of the period (B)
$ 0.5  $ 8.3  $ 1.2  $ 2.0  $ 12.0 

(A) Cash payments for the three months ended July 1, 2023 may include payments related to prior period charges.
(B) Restructuring, exit and impairment charges accrued as of July 1, 2023 are expected to be paid in the next twelve months.

The following table is a summary of these expenses for the six months ended July 1, 2023:
(in millions) Engine P&A Navico Group Boat Corporate Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 1.0  $ 9.5  $ 5.9  $ 0.7  $ 17.1 
Asset-related —  1.4  —  —  1.4 
Professional fees —  —  —  4.9  4.9 
Total restructuring, exit and impairment charges $ 1.0  $ 10.9  $ 5.9  $ 5.6  $ 23.4 
Total cash payments for restructuring, exit and impairment charges (A)
$ 0.5  $ 5.3  $ 4.7  $ 3.6  $ 14.1 
Accrued charges at end of the period (B)
$ 0.5  $ 8.3  $ 1.2  $ 2.0  $ 12.0 

(A) Cash payments for the six months ended July 1, 2023 may include payments related to prior period charges.
(B) Restructuring, exit and impairment charges accrued as of July 1, 2023 are expected to be paid in the next twelve months.