Subsequent Event

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Restructuring and Repositioning Plan (the "2019 Phase 2 Plan")

On July 31, 2019, the Board approved a business restructuring and repositioning plan to further optimize the design and footprint of the Company's global organization, primarily with respect to its general administration and business support functions, and streamline cross-functional activities (the “2019 Phase 2 Plan”). The Company expects to incur total pre-tax costs in connection with the 2019 Phase 2 Plan of approximately $30 million to $35 million, of which approximately $23 million to $27 million represent restructuring costs and asset impairments, and approximately $7 million to $8 million represent repositioning costs. Approximately 90% of the estimated pre-tax restructuring costs represent employee severance and other employee-related costs, while the remaining 10% include other associated costs, including asset impairments. Repositioning costs primarily consist of consulting and recruitment services associated with the Company’s organizational realignment. Substantially all of the pre-tax restructuring costs, excluding asset impairments, and all of the pre-tax repositioning costs are expected to result in cash expenditures. Additionally, GCP expects to incur approximately $2 million of capital expenditures related to repositioning activities. The 2019 Phase 2 Plan is expected to result in the net reduction of approximately 8% to 10% of the Company's workforce. Substantially all of the restructuring actions under the 2019 Phase 2 Plan are expected to be completed by December 31, 2020.

The 2019 Phase 2 Plan is separate and in addition to the 2019 Plan that was approved by the Board on February 22, 2019 and the 2018 Plan that was approved by the Board on August 1, 2018.