Restructuring

2016 Restructuring and Cost Savings Plan ("2016 Plan")

During the second quarter of 2016, the Company initiated a restructuring and cost savings plan ("2016 Plan") to improve efficiencies and reduce fixed costs. As a part of this plan, 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. As of June 30, 2017, manufacturing operations had ceased at three of these manufacturing facilities. Based on current estimates and actual charges to date, the Company expects total pre-tax restructuring costs of approximately $31 million, with employee termination costs accounting for approximately $15 million of the total. In addition, the Company expects to incur approximately $3 million in fixed asset related costs and $12 to $13 million in other costs which primarily represent the cost to move and re-install equipment. Expenses in the second quarter of 2017 were $2.6 million which consisted mainly of the cost to re-install moved equipment. Expenses to date for the program are $28.2 million.

An analysis of the 2016 Plan accruals follows:



(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Restructuring Costs
Reserve balance at December 31, 2016	$	9.4		$	—		$	2.3		$	11.7
Net expense accrued	0.1			0.6			5.9			6.6
Utilization (cash payments or otherwise settled)	(4.0		)	(0.3		)	(5.2		)	(9.5		)
Translation adjustments and other	0.1			(0.2		)	(0.1		)	(0.2		)
Reserve balance at June 30, 2017	$	5.6		$	0.1		$	2.9		$	8.6

Plant closings associated with the 2016 Plan are expected to be completed by the end of 2017. Cash payments in the three and six months ended June 30, 2017 totaled $4.5 million and $9.5 million, respectively. Cash payments for the balance of 2017 are expected to be approximately $8.2 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 primarily as other current liabilities.

2017 Restructuring and Cost Savings Plan ("2017 Plan")

On June 30, 2017, the Company announced restructuring activities targeted to improve efficiency and profitability that further positions the Company for long-term success. As a part of this plan, the Company announced the intention to close two production facilities and move work performed at these facilities to other Bemis locations to optimize manufacturing capacity. In addition, the Company announced it will reduce administrative positions by approximately 300 over the next three years. The Company noted the initial actions represent the first steps in the Company's cost savings plan to improve efficiency and profitability.

Based on current estimates and actual charges to date related to the initial steps of the plan, the Company expects total pre-tax restructuring costs of approximately $35 to $38 million, primarily related to the closure of the two production facilities and the reduction of 300 administrative positions, which includes $17 to $19 million in employee termination costs, approximately $12 million in fixed asset related costs, and $6 to $7 million in other project costs, including the move and re-installation of equipment. Expenses in the second quarter of 2017 were $20.4 million which consisted primarily of employee termination costs and fixed asset write-downs of equipment. The estimated 2017 Plan costs incurred by reportable segment follow:



(in millions)	U.S. Packaging		Global Packaging		Corporate		Total
Expense incurred to date	$	6.7	$	12.4	$	1.3	$	20.4
Estimated future expense	10.1		4.3		—		14.4
Estimated costs of initial program steps	$	16.8	$	16.7	$	1.3	$	34.8

An analysis of the 2017 Plan accruals follows:



(in millions)	Employee Costs		Fixed Asset Related			Other Costs		Total Restructuring Costs
Net expense accrued	16.2		4.2			—		20.4
Utilization (cash payments or otherwise settled)	—		(4.2		)	—		(4.2		)
Reserve balance at June 30, 2017	$	16.2	$	—		$	—	$	16.2

Plant closings related to the initial steps of the plan are expected to be completed by the end of 2018. Cash payments in 2017 are expected to be approximately $3 to $4 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.