In the first quarter of 2025, the Company completed a review of its cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders. As a result of this review, the Company determined it would cease the ongoing development of S/4HANA.

As a result of this decision, in the first quarter of 2025, the Company recognized a non-cash, pre-tax impairment charge of $71.6 million associated with capitalized implementation costs. The Company also recognized pre-tax charges of $14.7 million associated with unpaid contractual obligations for hosting fees. Further, the Company recognized charges of $2.8 million associated with severance actions resulting from the decision to cease development of S/4HANA. These charges are included in Selling and administrative expense within the Condensed Consolidated Statements of Income.

Further restructuring charges in 2026 and 2025 were recognized associated with workforce reductions and plant closures. These actions have been taken as a result of productivity initiatives and organizational changes.


(in millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2025	$	10.1	$	0.8	$	10.9
Restructuring charges	38.1		7.5		45.6
Payments, utilization and translation	(12.9)		(8.3)		(21.2)
Balance at December 31, 2025	$	35.3	$	—	$	35.3
Restructuring charges	0.8		3.2		4.0
Payments, utilization and translation	(5.9)		(3.2)		(9.1)
Balance at March 31, 2026	$	30.2	$	—	$	30.2