Restructuring and Relocation Activities

3 Months Ended

Mar. 31, 2017

Restructuring And Related Activities [Abstract]

Note 9 Restructuring and Relocation Activities

Consolidation of Restructuring Programs

In the first quarter of 2016, the Board of Directors agreed to consolidate the remaining activities of all restructuring programs to create a single program to be called the “Sealed Air Restructuring Program” or the “Program.”

The Program consists of a portfolio of restructuring projects across all of our divisions as part of our transformation of Sealed Air into a knowledge-based company, including reductions in headcount, and relocation of certain facilities and offices, which primarily reflects the relocation from our former corporate headquarters in Elmwood Park, New Jersey; and facilities in Saddle Brook, New Jersey; Racine, Wisconsin; and, Duncan and Greenville, South Carolina to our new global headquarters in Charlotte, North Carolina. The cost of the Charlotte campus is estimated to be approximately $120 million.

Program metrics are as follows:

	Sealed Air Restructuring Program
Approximate positions eliminated by the program		1,950
Estimated Program Costs (in millions):
Costs of reduction in headcount as a result of reorganization	$235-$245
Other expenses associated with the Program	155-160
Total expense	$390-$405
Capital expenditures	250-255
Proceeds, foreign exchange and other cash items	(70)-(75)
Total estimated net cash cost	$570-$585
Program to Date Cumulative Expense (in millions):
Costs of reduction in headcount as a result of reorganization	$	226
Other expenses associated with the Program	$	109
Total Cumulative Expense	$	335
Cumulative Capital expenditures	$	224

The following table details our restructuring activities as reflected in the Condensed Statement of Operations for the three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
(In millions)	2017			2016
Continuing operations:
Other associated costs	$	3.9		$	3.9
Restructuring charges		1.9			(0.2	)
Total charges from continuing operations	$	5.8		$	3.7
Charges included in discontinued operations		(1.7	)		2.4
Total charges	$	4.1		$	6.1
Capital Expenditures	$	9.9		$	19.1

The restructuring accrual, spending and other activity for the three months ended March 31, 2017 and the accrual balance remaining at March 31, 2017 related to the Program was as follows (in millions):

Restructuring accrual at December 31, 2016	$	47.4
Accrual and accrual adjustments		(0.5	)
Cash payments during 2017		(10.9	)
Effect of changes in foreign currency exchange rates		0.7
Restructuring accrual at March 31, 2017	$	36.7

We expect to pay $35.1 million of the accrual balance remaining at March 31, 2017 within the next twelve months. This amount is included in accrued restructuring costs on the Condensed Consolidated Balance Sheet at March 31, 2017. The remaining accrual of $1.6 million is expected to be paid in 2018. This amount is included in other non-current liabilities on our Condensed Consolidated Balance Sheet at March 31, 2017.