Restructuring Plans

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

During the second quarter of 2016, the Company initiated a restructuring and cost savings plan to improve efficiencies and reduce fixed costs. As a part of this plan, four Latin American facilities were closed. Most of the production from these facilities was transferred to other facilities. As of March 31, 2018, manufacturing operations had ceased at all four of these manufacturing facilities. Based on current estimates and actual charges to date, the Company expects total pre-tax restructuring costs of approximately $32 million, with approximately $13 million in employee termination costs, approximately $2 million in fixed asset related costs, and $17 million in other costs which primarily represent the cost to move and re-install equipment.

The estimated 2016 Plan costs are as follows:



(in millions)	Latin America Packaging		Rest of World Packaging			Total
2016 net expense accrued	$	20.5	$	1.1		$	21.6
2017 net expense accrued	8.0		0.2			8.2
2018 first quarter net expense accrued	0.9		(0.1		)	0.8
Expense incurred to date	29.4		1.2			30.6
Estimated future expense	1.1		—			1.1
Estimated costs of program	$	30.5	$	1.2		$	31.7

An analysis of the 2016 Plan accruals follows:



(in millions)	Employee Costs			Other Costs			Total Restructuring Costs
Reserve balance at December 31, 2017	$	1.1		$	4.4		$	5.5
Net expense accrued	(0.1		)	0.9			0.8
Utilization (cash payments or otherwise settled)	(0.2		)	(0.8		)	(1.0		)
Translation adjustments and other	(0.2		)	—			(0.2		)
Reserve balance at March 31, 2018	$	0.6		$	4.5		$	5.1

Plant closings associated with the 2016 Plan are complete. Cash payments in 2017 and 2016 totaled $15.4 million and $8.3 million, respectively. Cash payments in the three months ended March 31, 2018 totaled $1.0 million. Cash payments for the balance of 2018 are expected to be approximately $1.7 million. The costs related to restructuring activities have been recorded on the consolidated statement of income as restructuring and other 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 four production facilities for which business will be relocated to existing facilities and the closure of an additional manufacturing facility for which business will not be relocated. As of March 31, 2018, operations ceased at two of the manufacturing facilities and business has been relocated to existing facilities. In addition, the Company announced it will reduce administrative positions by approximately 500 over the next three years and consolidate certain administrative offices and take other actions to improve the cost efficiency of a variety of administrative and operational processes.

The Company expects total 2017 Plan pre-tax restructuring costs of approximately $65 to $70 million, which includes $29 to $31 million in employee termination costs, $19 to $20 million in fixed asset related expenses, and $17 to $19 million in other restructuring project costs, including the movement and re-installation of equipment. Expenses in the three months ended March 31, 2018 were $4.4 million, which consisted primarily of employee termination costs and fixed asset write-downs of equipment.

The estimated 2017 Plan costs are as follows:



(in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Corporate		Total
2017 net expense accrued	$	13.4	$	20.7	$	1.5	$	3.5	$	39.1
2018 first quarter net expense accrued	2.0		1.2		1.1		0.1		4.4
Expense incurred to date	15.4		21.9		2.6		3.6		43.5
Estimated future expense	16.6		4.8		0.4		0.3		22.1
Estimated costs of program	$	32.0	$	26.7	$	3.0	$	3.9	$	65.6

An analysis of the 2017 Plan accruals follows:



(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Restructuring Costs
Reserve balance at December 31, 2017	$	19.2		$	—		$	2.5		$	21.7
Net expense accrued	1.2			2.5			0.7			4.4
Utilization (cash payments or otherwise settled)	(3.4		)	(2.5		)	(0.3		)	(6.2		)
Translation adjustments and other	(0.1		)	—			—			(0.1		)
Reserve balance at March 31, 2018	$	16.9		$	—		$	2.9		$	19.8

The 2017 Plan is expected to be completed by the end of 2019. Cash payments in the twelve months ended December 31, 2017 were $6.8 million. Cash payments in the three months ended March 31, 2018 were $3.7 million. The costs related to restructuring activities have been recorded on the consolidated statement of income as restructuring and other costs. The accruals related to restructuring activities have primarily been recorded on the consolidated balance sheet as other current liabilities.