Restructuring (Notes)

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

During the second quarter of 2016, the Company initiated a restructuring program to improve efficiencies and reduce fixed costs. As a part of this program, four Latin American facilities within the Global Packaging segment will be closed. Most of the production from these facilities will be transferred to other facilities. Based on current estimates and actual charges to date, the Company expects total project costs of approximately $28 to $30 million, with employee termination costs accounting for $15 to $16 million of the total and the balance in other restructuring costs which include fixed asset accelerated depreciation of approximately $3 million. Expenses in the third quarter of 2016 were $4.3 million which consisted primarily of fixed asset and other program costs. Expenses for the nine months ended September 30, 2016 were $17.6 million.

An analysis of the 2016 program accruals follows:

(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Restructuring Costs
Net expense accrued	$	14.8		$	1.0		$	1.8		$	17.6
Utilization (cash payments or otherwise settled)	(3.2		)	(1.0		)	(0.6		)	(4.8		)
Translation adjustments and other	0.4			—			—			0.4
Reserve balance at September 30, 2016	$	12.0		$	—		$	1.2		$	13.2

Plant closings associated with the program are expected to be completed in 2017, with the majority of program costs incurred by the end of 2016. Cash payments in 2016 are expected to be approximately $12 to $13 million. The costs related to restructuring activities have been recorded on the consolidated statement of income as restructuring and acquisition-related costs. The accruals related to restructuring activities have been recorded on the consolidated balance sheet as other current liabilities.