Quarterly report pursuant to Section 13 or 15(d)

Restructuring and other charges (income)

v3.22.4
Restructuring and other charges (income)
 9 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and other charges (income) Restructuring and Other Charges/(Income)
Impairment and other charges/(income)
In the third quarter of fiscal 2023, we identified a triggering event in our EMEA reportable segment. Given the continuing depressed economic conditions resulting from the Russo-Ukrainian war, including sanctions related thereto, the Company conducted a strategic assessment of its operations in its Russian subsidiary and we concluded that there was uncertainty in whether the Company could realize significant future economic benefits. Therefore, we recorded a total charge of $8,334 in the three months ended December 31, 2022. The charges were comprised of the following:
Charge Financial statement impact Amount
Increase in Current Expected Credit Loss, or "CECL," allowance for credit loss for certain accounts receivable Accounts receivable, net; Selling, general and administrative expenses $ 835 
Increase in inventory reserves Inventories, net; Cost of sales 4,831 
Contract asset adjustment Contract assets; Restructuring and other charges/(income) 327 
Prepaid expenses and other current assets adjustment Prepaid expenses and other current assets, Income tax receivable; Restructuring and other charges/(income) 1,477 
Impairment of Property, plant and equipment, net Property, plant and equipment, net; Restructuring and other charges/(income) 367 
Impairment of Operating lease right-of-use assets Operating lease right-of-use assets; Restructuring and other charges/(income) 389 
Impairment of Other non-current assets Deferred income taxes, Other non-current assets; Restructuring and other charges/(income) 108 
  $ 8,334 
All charges described above were recorded in our Europe, Middle East and Africa ("EMEA") reportable segment, with the exception of $241 of cost of sales from an increase in inventory reserves in our Canada reportable segment. Additionally,
we reclassified $3,084 of cash in our Russian subsidiary to restricted cash due to due to the uncertain nature of whether we can repatriate certain funds from our Russian subsidiary.
The Company will continue to evaluate sales to international customers with a presence in the Russian Federation and engage in those sales to the extent permissible with various international sanctions.
Please refer to Note 7, "Goodwill and Other Intangible Assets," for more information on impairment, and Note 14, "Subsequent Events," for more information regarding the Company's operations in the Russian Federation.
Fiscal 2022 charges/(income)
In the nine months ended December 31, 2021, we recorded $(103) for severance-related activity in our Canadian segment, which was recorded to "Restructuring and other charges/(income)" in our condensed consolidated statements of operations and comprehensive income/(loss). Additionally, we recorded $(311) in cash receipts related to receivables existing prior to the sale of our South Africa business, which was completed in fiscal 2021.
Restructuring and other charges/(income) by reportable segment were as follows:
 Three Months Ended December 31, 2022 Three Months Ended December 31, 2021 Nine Months Ended December 31, 2022 Nine Months Ended December 31, 2021
United States and Latin America $ —  $ —  $ —  $ (46)
Canada —  —  —  (186)
Europe, Middle East and Africa(1)
2,668  —  2,668  (182)
Asia-Pacific —  —  —  — 
  $ 2,668  $ —  $ 2,668  $ (414)
(1) - these charges relate to the Company's Russian subsidiary and were included in "Restructuring and other charges/(income)" on our condensed consolidated statement of operations and comprehensive income/(loss). See the section labeled "Impairment and other charges/(income)" above for a full detail of charges.