Cost Reduction Plans

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Cost Reduction Plans

Cost Reduction Plans

During 2015, the Company initiated the first phase ("Phase I") of the competitive improvement program (the "CIP") comprised of activities and initiatives aimed at reducing costs in order for the Company to continue to compete successfully. Phase I was comprised of three major components: (i) facilities optimization and footprint reduction; (ii) product affordability; and (iii) reduced administrative and overhead costs. In 2017, the Board of Directors approved the second phase ("Phase II") of the CIP. Pursuant to Phase II, the Company expanded its CIP and further consolidated its Sacramento, California, and Gainesville, Virginia sites, while it centralized and expanded its existing presence in Huntsville, Alabama. The Company estimates the restructuring and related costs will be $197.0 million (including approximately $60.5 million of capital expenditures) and has incurred $178.1 million of such costs through March 31, 2020, including $54.7 million in capital expenditures. The following table summarizes the Company's severance and retention liabilities related to CIP activity:

	Severance			Retention			Total
	(In millions)
December 31, 2019	$	5.2		$	4.6		$	9.8
Accrual	—			0.7			0.7
Payments	(2.6		)	(2.3		)	(4.9		)
March 31, 2020	$	2.6		$	3.0		$	5.6

The costs associated with CIP are included as a component of the Company’s U.S. government forward-pricing rates, and therefore, are recovered through the pricing of the Company’s products and services to the U.S. government.