Restructuring Activities

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

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 was estimated to be approximately $120 million. The Program also includes costs associated with the sale of Diversey.

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	$260-$270
Other expenses associated with the Program	130-135
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	$	246
Other expenses associated with the Program	125
Total Cumulative Expense	$	371
Cumulative capital expenditures	$	235

The following table details our restructuring activities reflected in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2018 and 2017:



	Three Months Ended March 31,
(In millions)	2018		2017
Continuing Operations:
Other associated costs	$	2.2	$	3.9
Restructuring charges	8.6		1.9
Total charges from continuing operations	10.8		5.8
Charges included in discontinued operations	—		(1.7		)
Total charges	$	10.8	$	4.1
Capital expenditures	$	0.2	$	9.9

The restructuring accrual, spending and other activity for the three months ended March 31, 2018 and the accrual balance remaining at March 31, 2018 related to these programs were as follows:



(In millions)
Restructuring accrual at December 31, 2017	$	16.1
Accrual and accrual adjustments	8.6
Cash payments during 2018	(4.1		)
Effect of changes in foreign currency exchange rates	0.3
Restructuring accrual at March 31, 2018	$	20.9

We expect to pay $20.6 million of the accrual balance remaining at March 31, 2018 within the next twelve months. This amount is included in accrued restructuring costs on the Condensed Consolidated Balance Sheet at March 31, 2018. The remaining accrual of $0.3 million is expected to be paid in 2019. This amount is included in other non-current liabilities on our Condensed Consolidated Balance Sheet at March 31, 2018.