Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Restructuring Action

On August 1, 2018, the Board of Directors of the Company approved a business restructuring and repositioning plan (the “2018 Plan”). The 2018 Plan is designed to streamline operations and improve profitability primarily within the concrete admixtures product line of the Specialty Construction Chemicals segment by focusing on the Company's core markets, rationalizing non-profitable geographies, reducing its global cost structure and accelerating the integration of VERIFI^® into the Company’s global admixtures business.

The Company expects to incur total pre-tax costs in connection with the 2018 Plan of approximately $30 million to $35 million, of which approximately $20 million to $25 million represents restructuring costs and approximately $10 million represents repositioning costs.

Approximately 70% of the estimated pretax restructuring costs represent employee severance and other employee-related costs, while the remaining 30% includes facility exit costs, inventory and other asset write-offs, and other-related costs. Repositioning costs primarily consist of consulting services to assist GCP in advancing its technology strategy. Approximately 80% of the pre-tax restructuring costs and 100% of the pre-tax repositioning costs are expected to result in cash expenditures. The restructuring actions are expected to result in the net reduction of approximately 8%-10% of the Company's workforce. Substantially all of the restructuring actions under the 2018 Plan are expected to be completed by the end of 2019.