Quarterly report pursuant to Section 13 or 15(d)

Restructuring, Exit and Integration Activities

v3.23.3
Restructuring, Exit and Integration Activities
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2023, the Company recorded restructuring charges within all segments related to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies. The Company estimates approximately $35 to $40 million of charges will be incurred related to these actions during 2023. The Company estimates these actions will result in approximately $40 million of annualized cost savings.
The following table is a summary of these expenses for the three months ended September 30, 2023:
(in millions) Propulsion Engine P&A Navico Group Boat Corporate Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 2.7  $ 2.3  $ 0.6  $ 5.1  $ 1.2  $ 11.9 
Asset-related (A)
—  —  4.4  —  —  4.4 
Total restructuring, exit and impairment charges $ 2.7  $ 2.3  $ 5.0  $ 5.1  $ 1.2  $ 16.3 
Total cash payments for restructuring, exit and impairment charges (B)
$ 0.8  $ 1.4  $ 3.2  $ 3.7  $ 2.4  $ 11.5 
Accrued charges at end of the period (C)
$ 1.9  $ 1.4  $ 5.7  $ 2.6  $ 0.8  $ 12.4 

(A) Includes impairment charges of $3.0 million associated with the Company's decision to no longer go to market under the Garelick trade name.
(B) Cash payments for the three months ended September 30, 2023 may include payments related to prior period charges.
(C) Restructuring, exit and impairment charges accrued as of September 30, 2023 are expected to be paid in the next twelve months.

The following table is a summary of these expenses for the nine months ended September 30, 2023:
(in millions) Propulsion Engine P&A Navico Group Boat Corporate Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 2.7  $ 3.3  $ 10.1  $ 11.0  $ 1.9  $ 29.0 
Asset-related (A)
—  —  5.8  —  —  5.8 
Professional fees —  —  —  —  4.9  4.9 
Total restructuring, exit and impairment charges $ 2.7  $ 3.3  $ 15.9  $ 11.0  $ 6.8  $ 39.7 
Total cash payments for restructuring, exit and impairment charges (B)
$ 0.8  $ 1.9  $ 8.5  $ 8.4  $ 6.0  $ 25.6 
Accrued charges at end of the period (C)
$ 1.9  $ 1.4  $ 5.7  $ 2.6  $ 0.8  $ 12.4 

(A) Includes impairment charges of $3.0 million associated with the Company's decision to no longer go to market under the Garelick trade name.
(B) Cash payments for the nine months ended September 30, 2023 may include payments related to prior period charges.
(C) Restructuring, exit and impairment charges accrued as of September 30, 2023 are expected to be paid in the next twelve months.

The following table is a summary of these expenses for the three months ended October 1, 2022:
(in millions) Navico Group
Boat (A)
Corporate (B)
Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 6.9  $ —  $ —  $ 6.9 
Asset-related —  0.3  17.4  17.7 
Total restructuring, exit and impairment charges $ 6.9  $ 0.3  $ 17.4  $ 24.6 
Total cash payments for restructuring, exit and impairment charges (C)
$ 1.5  $ 0.1  $ —  $ 1.6 
Accrued charges at end of the period $ 5.4  $ —  $ —  $ 5.4 

(A) Includes asset-related impairment charges, net of insurance recoveries, associated with Hurricane Ian.
(B) Includes impairment charges of $17.4 million related to the Company's decision not to place certain capitalized software intangible assets into service during the three months ended October 1, 2022.
(C) Cash payments for the three months ended October 1, 2022 may include payments related to prior period charges.
The following table is a summary of these expenses for the nine months ended October 1, 2022:
(in millions) Navico Group
Boat (A)
Corporate (B)
Total
Restructuring, exit and impairment activities:
Employee termination and other benefits $ 6.9  $ —  $ —  $ 6.9 
Asset-related —  0.3  17.4  17.7 
Total restructuring, exit and impairment charges $ 6.9  $ 0.3  $ 17.4  $ 24.6 
Total cash payments for restructuring, exit and impairment charges (C)
$ 1.5  $ 0.2  $ —  $ 1.7 
Accrued charges at end of the period $ 5.4  $ —  $ —  $ 5.4 

(A) Includes asset-related impairment charges, net of insurance recoveries, associated with Hurricane Ian.
(B) Includes impairment charges of $17.4 million related to the Company's decision not to place certain capitalized software intangible assets into service during the three months ended October 1, 2022.
(C) Cash payments for the nine months ended October 1, 2022 may include payments related to prior period charges.