Annual report pursuant to Section 13 and 15(d)

Restructuring, Exit, Impairment and Integration Activities

v3.24.0.1
Restructuring, Exit, Impairment and Integration Activities
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Activities Restructuring, Exit and Impairment Activities
The Company has announced and implemented a number of initiatives designed to improve its cost structure, general operating efficiencies and its utilization of production capacity. These initiatives resulted in the recognition of restructuring, exit and impairment charges in the Consolidated Statements of Operations during 2023, 2022 and 2021. Restructuring, exit and impairment costs include employee termination and other benefits, inventory adjustments to lower of cost or net realizable value, costs to retain and relocate employees, consulting costs, consolidation of manufacturing footprint, facility shutdown costs, and asset disposition and impairment actions. The Company recognizes the expense in the accounting period when it has committed to or incurred the cost, as appropriate.

The following table is a summary of the net expense associated with the restructuring, exit and impairment activities. Restructuring, exit and impairment charges in 2023 relate to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies as well as asset-related impairments. Restructuring, exit and impairment charges in 2022 primarily relate to asset-related impairments and headcount reductions associated with the integration of Navico. Restructuring, exit and impairment charges in 2021 primarily relate to organizational realignment within the Navico Group segment, specifically in Europe.
(in millions) Propulsion Engine P&A
Navico Group (A)
Boat
Corporate (B)
Total
Restructuring, exit and impairment activities:    
Employee termination and other benefits $ 2.7  $ 3.3  $ 11.6  $ 10.5  $ 2.8  $ 30.9 
Asset-related —  —  18.9  —  —  18.9 
Professional fees —  —  —  —  4.9  4.9 
Total 2023 restructuring, exit and impairment charges $ 2.7  $ 3.3  $ 30.5  $ 10.5  $ 7.7  $ 54.7 
Employee termination and other benefits $ —  $ —  $ 7.7  $ —  $ —  $ 7.7 
Asset-related —  —  —  —  17.4  17.4 
Total 2022 restructuring, exit and impairment charges $ —  $ —  $ 7.7  $ —  $ 17.4  $ 25.1 
Employee termination and other benefits $ —  $ —  $ 0.7  $ 0.1  $ —  $ 0.8 
Total 2021 restructuring, exit and impairment charges $ —  $ —  $ 0.7  $ 0.1  $ —  $ 0.8 

(A) Includes impairment charges of $13.0 million associated with an impairment of the Navico trade name and $3.0 million associated with the Company's decision to no longer go to market under the Garelick trade name during the year ended December 31, 2023.
(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 year ended December 31, 2022.
The following tables summarize the change in accrued restructuring, exit and impairment charges within Accrued expenses in the Consolidated Balance Sheets for the years ended December 31, 2023, 2022 and 2021:
(in millions) Propulsion Engine P&A Navico Group Boat Corporate Total
Accrued Charges as of December 31, 2020 $ —  $ —  $ 0.3  $ 1.2  $ 1.7  $ 3.2 
Total Charges —  $ —  0.7  0.1  —  0.8 
Payments (A)
—  —  (1.0) (1.1) (1.7) $ (3.8)
Accrued Charges as of December 31, 2021 $ —  $ —  $ —  $ 0.2  $ —  $ 0.2 
Total Charges —  —  7.7  —  17.4  25.1 
Non-Cash Charges —  —  —  —  (17.4) $ (17.4)
Payments (A)
—  —  (3.6) (0.2) —  $ (3.8)
Accrued Charges as of December 31, 2022 $ —  $ —  $ 4.1  $ —  $ —  $ 4.1 
Total Charges 2.7  3.3  30.5  10.5  7.7  54.7 
Non-Cash Charges —  —  (18.9) 1.2  —  (17.7)
Payments (A)
(1.5) (2.6) (10.6) (10.0) (7.1) $ (31.8)
Accrued Charges as of December 31, 2023 (B)
$ 1.2  $ 0.7  $ 5.1  $ 1.7  $ 0.6  $ 9.3 

(A) Cash payments may include payments related to prior period charges.
(B) The accrued charges as of December 31, 2023 are expected to be paid in the next twelve months.
Reductions in demand for the Company's products, further refinement of its product portfolio, further opportunities to reduce costs or the cost of integrating future acquisitions may result in additional restructuring, exit and impairment charges in future periods.