Restructuring Activities

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

For the three and nine months ended September 30, 2020, the Company incurred $1.0 million and $11.7 million of restructuring charges, respectively, and $7.2 million and $15.0 million, respectively, of other related costs for our restructuring programs. These charges were primarily a result of restructuring and associated costs incurred in connection with the Company’s Reinvent SEE strategy.

Our primary restructuring program (“Program”) is defined as the initiatives associated with our Reinvent SEE strategy in addition to the conclusion of our previously existing restructuring programs at the time of Reinvent SEE's approval. Reinvent SEE is a three-year program approved by the Board of Directors in December 2018. The expected spend in the previously existing program at the time of Reinvent SEE's approval was primarily related to elimination of stranded costs following the sale of our Diversey segment and Hygiene Solutions business to Diamond (BC) B.V. in 2017. The Company expects restructuring activities associated with the Program to be completed by the end of 2021.

The Board of Directors has approved cumulative restructuring spend of $840 to $885 million for the Program. Restructuring spend is estimated to be incurred as follows:


(in millions)	Total Restructuring Program Range				Less Cumulative Spend to Date		Remaining Restructuring Spend(2)
	Low		High				Low		High
Costs of reduction in headcount as a result of reorganization	$	355	$	370	$	(335)	$	20	$	35
Other expenses associated with the Program	230		245		(213)		17		32
Total expense	$	585	$	615	$	(548)	$	37	$	67
Capital expenditures	255		270		(239)		16		31
Total estimated cash cost(1)	$	840	$	885	$	(787)	$	53	$	98

(1) Total estimated cash cost excludes the impact of proceeds expected from the sale of property and equipment and foreign currency impact.

(2) Remaining restructuring spend primarily consists of restructuring costs associated with the Company’s Reinvent SEE strategy.

The Company also has a restructuring program related to recent acquisitions. We incurred approximately $1.7 million in restructuring charges related to this activity during the three and nine month periods ended September 30, 2020. We incurred no restructuring charges related to this activity during the three or nine month period ended September 30, 2019. See Note 5, "Acquisitions," of the Notes to Condensed Consolidated Financial Statements for additional information related to our acquisitions.

The following table details our restructuring activities reflected in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019

Other associated costs	$	7.2	$	12.8	$	15.0	$	50.8
Restructuring charges	1.0		6.9		11.7		43.6


Total charges	$	8.2	$	19.7	$	26.7	$	94.4
Capital expenditures	$	0.2	$	0.2	$	0.4	$	2.5

The restructuring accrual, spending and other activity for the nine months ended September 30, 2020 and the accrual balance remaining at September 30, 2020 related to these programs were as follows:


(In millions)
Restructuring accrual at December 31, 2018	$	37.5
Accrual and accrual adjustments	41.9
Cash payments during 2019	(47.6)

Effect of changes in foreign currency exchange rates	(0.3)
Restructuring accrual at December 31, 2019	$	31.5
Accrual and accrual adjustments	11.7
Cash payments during 2020	(23.0)

Effect of changes in foreign currency exchange rates	(0.5)
Restructuring accrual at September 30, 2020	$	19.7

We expect to pay $17.0 million of the accrual balance remaining at September 30, 2020 within the next twelve months. This amount is included in accrued restructuring costs on the Condensed Consolidated Balance Sheets at September 30, 2020. Of the remaining accrual of $2.7 million, $0.6 million relating to Reinvent SEE is expected to be paid by the end of 2021 and $2.1 million relating to the restructuring program for recent acquisitions is expected to be paid in periods including, and beyond, 2021. These amounts are included in other non-current liabilities on our Condensed Consolidated Balance Sheets at September 30, 2020.

One of the components of Reinvent SEE was to enhance the operational efficiency of the Company by acting as “One SEE.” The program was approved by our Board of Directors as a consolidated program benefiting both Food and Protective and accordingly the expected program spend by reporting segment is not available. However, of the restructuring accrual of $19.7 million as of September 30, 2020, $9.6 million was attributable to Food and $10.1 million was attributable to Protective.