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RESTRUCTURING AND COST REDUCTION INITIATIVES
 6 Months Ended
Jun. 30, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND COST REDUCTION INITIATIVES RESTRUCTURING AND OTHER COST REDUCTION INITIATIVES
In January 2020, the Company announced its plan to consolidate its manufacturing footprint in North America, resulting in the closure of the Grand Rapids, Michigan manufacturing facility (“Grand Rapids”). The closure is part of an initiative to optimize the Company’s North American manufacturing operations. In June 2020, the Company sold its Grand Rapids land and building assets for $12.9 million and received cash proceeds of approximately $12.2 million, net of transaction costs and customary closing adjustments. The Company recognized a gain on sale of approximately $1.2 million, which is netted against Restructuring charges on the accompanying condensed consolidated statement of operations. Concurrent with the sale, the Company entered into a sale-leaseback arrangement under which the Company is leasing various zoned premises within the facility for various terms, none of which extend beyond August 2021, and the majority of which expire through December 2020.
As of June 30, 2020, production has been substantially migrated from Grand Rapids to the Company’s other North America facilities. Other restructuring actions the Company has taken during 2020 relate to supply chain optimization, which are expected to be completed by the end of 2021. The Company’s existing manufacturing operations in East Greenville, Pennsylvania; Muskegon, Michigan; and Toronto, Ontario (Canada) are not otherwise impacted by the restructuring plan.
In addition to the restructuring actions noted above, under which approximately 70 positions were eliminated on a net basis, the Company has executed certain other cost reduction initiatives in response to the current economic environment resulting from COVID-19. These actions include the elimination of approximately 330 non-production related positions, resulting in an aggregate workforce reduction of approximately 11% since December 31, 2019. Between the restructuring actions and other initiatives noted above, the Company expects to incur total charges of approximately $22.0 million, comprised of severance and other one-time termination benefits, facilities-related charges and other associated costs. The Company anticipates making cash payments totaling approximately $20.7 million, which will be substantially paid by the end of 2020.
During the six months ended June 30, 2020, the Company recognized restructuring charges of $18.8 million, attributable to the Office and Lifestyle segments in the amounts of $14.6 million and $0.7 million, respectively, and to Corporate in the amount of $3.5 million. The restructuring charges have been recognized between operating expenses and Cost of sales in the amounts of $17.4 million and $1.4 million, respectively, on the accompanying condensed consolidated statement of operations. The restructuring charge of $1.4 million included in Cost of sales represents accelerated depreciation and other non-cash items related to abandoned equipment and inventory write-downs, which is not reflected in the table below.
Changes in restructuring obligations during the six months ended June 30, 2020 are summarized as follows:
North America Operations OptimizationWorkforce Reduction and Other Cost InitiativesTotal
Balance as of December 31, 2019$—  $0.2  $0.2  
Provisions and accruals10.5  6.9  17.4  
Cash payments(9.5) (5.7) (15.2) 
Balance as of June 30, 2020$1.0  $1.4  $2.4  
The restructuring reserve is classified as current and is included in Other current liabilities on the condensed consolidated balance sheets. All but an immaterial component of the reserve is expected to be utilized (settled in cash) during 2020.