Restructuring Activities

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

For the year ended December 31, 2020, the Company incurred $11.0 million of restructuring charges and $19.6 million 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 business transformation.

Our primary restructuring program (“Program”) is defined as the initiatives associated with our Reinvent SEE business transformation in addition to the conclusion of our previously existing restructuring programs at the time of Reinvent SEE's approval. The Reinvent SEE business transformation 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 the 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	$	340	$	355	$	(334)	$	6	$	21
Other expenses associated with the Program	255		270		(220)		35		50
Total expense	595		625		(554)		41		71
Capital expenditures	245		260		(239)		6		21
Total estimated cash cost(1)	$	840	$	885	$	(793)	$	47	$	92

(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 Program.

The Company also has a restructuring program related to recent acquisitions. We incurred approximately $1.7 million and $2.3 million in restructuring charges related to this activity during the years ended December 31, 2020 and 2019, respectively. See Note 5, "Acquisitions," of the Notes for additional information related to our acquisitions.

The following table details our aggregate restructuring activities as reflected in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(In millions)	2020		2019		2018

Other associated costs(1)	$	19.6	$	60.3	$	13.9
Restructuring charges	11.0		41.9		47.8


Total charges	$	30.6	$	102.2	$	61.7
Capital expenditures	$	0.4	$	3.4	$	1.0

(1) Other associated costs excludes non-cash cost of $1.9 million for the year ended December 31, 2018 related to share- based compensation expense.

The aggregate restructuring accrual, spending and other activity for the years ended December 31, 2020, 2019 and 2018 and the accrual balance remaining at those year-ends were as follows:


(In millions)
Restructuring accrual at December 31, 2017	$	16.1

Accrual and accrual adjustments	47.8
Cash payments during 2018	(25.0)

Effects of changes in foreign currency exchange rates	(1.4)
Restructuring accrual at December 31, 2018	$	37.5
Accrual and accrual adjustments	41.9
Cash payments during 2019	(47.6)
Effects of changes in foreign currency exchange rates	(0.3)
Restructuring accrual at December 31, 2019	$	31.5
Accrual and accrual adjustments	11.0
Cash payments during 2020	(28.0)

Effect of changes in foreign currency exchange rates	(0.2)
Restructuring accrual at December 31, 2020	$	14.3

We expect to pay $12.2 million of the accrual balance remaining at December 31, 2020 within the next twelve months. This amount is included in accrued restructuring costs on the Consolidated Balance Sheets at December 31, 2020. The remaining accrual of $2.1 million, primarily related to restructuring for recent acquisitions, is expected to be paid in periods including, and beyond, 2022. These amounts are included in other non-current liabilities on our Consolidated Balance Sheets at December 31, 2020.

One of the components of the Reinvent SEE business transformation 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 $14.3 million as of December 31, 2020, $6.5 million was attributable to Food and $7.8 million was attributable to Protective.