Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring

2020 Projects

On September 17, 2020, our Board of Directors approved a restructuring plan (the 2020 Projects), which includes activities that continue our efforts to optimize our global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are scheduled to be substantially complete by the end of 2022. We estimate pre-tax restructuring charges of $55 million to $65 million, of which approximately $35 million to $45 million will result in cash expenditures, and the remainder relates to non-cash charges. Of the total expected charges, $43.2 million was recognized in 2020. The largest component of expected remaining costs to be recognized is related to a non-cash cumulative translation adjustment charge. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:

In thousands	Total Expected Costs at December 31, 2020		Costs Recognized in Prior Periods		Costs Recognized During the Year Ended December 31, 2020		Expected Remaining Costs to be Recognized at December 31, 2020
Employee severance costs	$	36,225	$	—	$	36,225	$	—
Asset impairments & net loss on sale or disposal	6,944		—		6,944		—
Other restructuring costs	16,508		—		63		16,445
Total	$	59,677	$	—	$	43,232	$	16,445

2018 Projects

In February 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. We have substantially completed expense recognition on the plan as of the end of 2020.

In the second quarter of 2020, we reversed expenses for employee severance costs and asset impairments we will no longer incur as a result of selling our operations in Latin America.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:

In thousands	Total Expected Costs at December 31, 2020		Costs Recognized in Prior Periods		Costs Recognized During the Year Ended December 31, 2020		Expected Remaining Costs to be Recognized at December 31, 2020
Employee severance costs	$	63,173	$	72,133	$	(8,960)	$	—
Asset impairments & net loss (gain) on sale or disposal	2,786		3,842		(1,056)		—
Other restructuring costs	19,862		11,420		3,797		4,645
Total	$	85,821	$	87,395	$	(6,219)	$	4,645

All prior restructuring plans are substantially complete and are not presented below.

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and the 2018 Projects during the year ended December 31, 2020:

In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2020	$	53,741	$	—	$	2,366	$	56,107
Costs charged to expense	27,265		5,888		3,860		37,013
Cash (payments) receipts	(15,725)		2,214		(3,632)		(17,143)
Net assets disposed and impaired	—		(8,102)		—		(8,102)
Effect of change in exchange rates	4,724		—		27		4,751
Ending balance, December 31, 2020	$	70,005	$	—	$	2,621	$	72,626

Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results.

Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, costs to exit the facilities once the operations in those facilities have ceased, and other costs associated with the liquidation of any effected legal entities. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset. Restructuring expense is part of the Corporate unallocated segment and does not impact the results of our operating segments.

The current portion of restructuring liabilities were $31.7 million and $18.9 million as of December 31, 2020 and 2019, respectively. The current portion of restructuring liabilities is classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances were $40.9 million and $37.2 million as of December 31, 2020 and 2019, respectively. The long-term portion of restructuring liabilities is classified within other long-term obligations on the Consolidated Balance Sheets and includes severance accruals and facility exit costs.