v3.25.2
Restructuring and Acquisition-Related Costs (Notes)
6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Business Combination, Integration, Restructuring, and Other Related Costs [Text Block]
12. RESTRUCTURING AND ACQUISITION-RELATED COSTS

In 2022, we completed our acquisition of Tekfor Group (Tekfor) and in 2023 we initiated certain restructuring actions associated with the acquired entities. We expect to incur restructuring costs associated with the acquired entities throughout 2025. In the first quarter of 2024, we initiated a global restructuring program (the 2024 Program) focused on optimizing our cost structure. We expect to incur costs under the 2024 Program into 2028.
A summary of our restructuring activity for the first six months of 2025 and 2024 is shown below:
Severance ChargesImplementation CostsTotal
(in millions)
Accrual at December 31, 2023$3.0 $1.7 $4.7 
Charges4.5 1.5 6.0 
Cash utilization(2.4)(1.2)(3.6)
Accrual at June 30, 2024$5.1 $2.0 $7.1 
Accrual at December 31, 2024$0.8 $2.0 $2.8 
Charges1.4 4.9 6.3 
Cash utilization(2.2)(4.6)(6.8)
Accrual at June 30, 2025$ $2.3 $2.3 
As part of our restructuring actions, we incurred total severance charges of approximately $1.4 million and $4.5 million during the six months ended June 30, 2025 and 2024, respectively. We also incurred total implementation costs of approximately $4.9 million and $1.5 million during the six months ended June 30, 2025 and 2024, respectively. Implementation costs consist primarily of plant exit costs.
Approximately $3.5 million of our total restructuring costs for the six months ended June 30, 2025 related to the 2024 Program and approximately $2.8 million were associated with Tekfor. From inception of the 2024 Program, we have incurred $13.0 million of total restructuring costs under this program. We have incurred $5.4 million of total restructuring costs associated with Tekfor.
Approximately $2.0 million and $3.4 million of our total restructuring costs for the six months ended June 30, 2025 related to our Driveline and Metal Forming segments, respectively, while the reminder were corporate costs. Approximately $3.9 million of our total restructuring costs for the six months ended June 30, 2024 related to our Driveline segment and these costs were primarily associated with the planned closure of our Glasgow Manufacturing Facility in Scotland, which is part of the 2024 Program. Approximately $1.7 million of our total restructuring costs for the six months ended June 30, 2024 related to our Metal Forming segment, while the remainder were corporate costs. We expect to incur approximately $30 million to $40 million of total restructuring charges in 2025.
The following table represents a summary of acquisition-related costs associated with the Business Combination and integration costs primarily related to our previous acquisition of Tekfor:
Acquisition-Related CostsIntegration ExpensesTotal
(in millions)
Charges for the six months ended June 30, 2025
$29.8 $0.1 $29.9 
Charges for the six months ended June 30, 2024
— 1.5 1.5 
Acquisition-related costs primarily consist of advisory, legal, accounting, valuation and certain other professional or consulting fees incurred. Integration expenses primarily reflect costs incurred for information technology infrastructure and enterprise resource planning systems, and consulting fees incurred in conjunction with integration activities. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Income and totaled $16.5 million and $5.0 million for the three months ended June 30, 2025 and June 30, 2024, respectively, and $36.2 million and $7.5 million for the six months ended June 30, 2025 and June 30, 2024, respectively.