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Cost Reduction Plan
 12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
Cost Reduction Plan
Cost Reduction Plan
During fiscal 2015, the Company initiated a competitive improvement program (the “CIP”) comprised of activities and initiatives aimed at reducing costs in order for the Company to continue to compete successfully. The CIP is composed of three major components: (i) facilities optimization and footprint reduction; (ii) product affordability; and (iii) reduced administrative and overhead costs. Under the CIP, the Company expects an estimated 500 headcount reduction. The Company currently estimates that it will incur restructuring and related costs over the four-year CIP program of approximately $82 million (excluding approximately $31 million of capital expenditures). The Company has incurred $18.4 million related to the CIP program through December 31, 2016 and additionally the Company has incurred $28.9 million in capital expenditures to support the CIP. A summary of the Company's CIP reserve activity:
 
Severance
 
Retention
 
Total
 
(In millions)
February 28, 2015
$
—

 
$
—

 
$
—

Accrual established
12.9

 
2.7

 
15.6

Payments
(1.8
)
 
—

 
(1.8
)
November 30, 2015
11.1

 
2.7

 
13.8

Accrual
(0.2
)
 
0.2

 
—

Payments
—

 
(1.2
)
 
(1.2
)
December 31, 2015
10.9

 
1.7

 
12.6

Accrual
—

 
2.3

 
2.3

Payments
(0.9
)
 
(1.9
)
 
(2.8
)
Adjustments
(3.2
)
 
—

 
(3.2
)
December 31, 2016
$
6.8

 
$
2.1

 
$
8.9


The costs associated with the CIP will be a component of the Company’s U.S. government forward pricing rates, and therefore, will be recovered through the pricing of the Company’s products and services to the U.S. government. In addition to the employee-related CIP obligations, the Company incurred non-cash accelerated depreciation expense of $0.7 million and $0.8 million in fiscal 2016 and 2015, respectively, associated with changes in the estimated useful life of long-lived assets impacted by the CIP.
In addition to the CIP, as part of the Company's ongoing effort to optimize business resources and achieve headcount reduction, the Company offered a Voluntary Reduction in Force ("VRIF") in July 2015 to substantially all employees. In connection with the VRIF, the Company recorded a liability of $2.6 million in the third quarter of fiscal 2015, consisting of costs for severance, employee-related benefits and other associated expenses. In addition, in December 2015, the Company offered a VRIF to certain employees at its Redmond, Washington location resulting in additional severance costs of $2.4 million consisting of costs for severance, employee-related benefits and other associated expenses.  In June 2016, the Company announced an organizational restructuring which was part of the on-going integration of Aerojet Rocketdyne to enhance the efficiency of Aerojet Rocketdyne and improve its competitive posture. In connection with the organizational restructuring, the Company recorded a liability of $1.1 million in the second quarter of fiscal 2016, consisting of costs for severance, employee-related benefits and other associated expenses. These costs will be a component of the Company’s U.S. government forward pricing rates, and therefore, will be recovered through the pricing of the Company’s products and services to the U.S. government.