RESTRUCTURING

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

RESTRUCTURING

In January 2020, the Company announced the closure of its Grand Rapids, Michigan manufacturing operations (“Grand Rapids”). Pursuant to this action, Grand Rapids is expected to be substantially closed, and its production substantially migrated to other North America facilities, by the end of the second quarter of 2020. Additionally, the Company will make changes to better optimize its logistics operations, which are expected to be completed by the end of 2021. The Company expects to incur total charges of approximately $18.2 million in connection with these actions, comprised of severance and retention costs of $7.0 million, moving and training costs of $6.0 million, facilities-related costs of $3.7 million and equipment write-offs of $1.5 million.

During the three months ended March 31, 2020, the Company recognized restructuring charges of $8.2 million, attributable to the Office and Lifestyle segments in the amounts of $7.5 million and $0.7 million, respectively. These charges relate primarily to severance and retention, as well as certain facilities-related initiatives. The restructuring charges have been recognized between operating expenses and Cost of sales in the amounts of $7.6 million and $0.6 million, respectively, on the accompanying condensed consolidated statement of operations. The restructuring charge of $0.6 million included in Cost of sales represents accelerated depreciation expense related to equipment that is expected to be abandoned as part of the restructuring. As of March 31, 2020, the Company expects that all of the $4.9 million restructuring reserve, which is included as a component of Other current liabilities, will be utilized (settled in cash) during 2020.

In connection with the restructuring actions noted above, the Company classified its Grand Rapids land and building assets, which have an aggregate carrying amount of approximately $11.1 million, as held for sale on the accompanying condensed consolidated balance sheet.