Restructuring and Other Charges, Net

12 Months Ended

Dec. 31, 2020

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

(3) Restructuring and Other Charges, Net

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

A summary of the pre-tax cost by restructuring program is as follows:

	Year Ended December 31,
	2020		2019		2018
	(in millions)
Restructuring costs:
Other Actions	$	9.9	$	4.3	$	3.4

The Company recorded pre-tax restructuring in its business segments as follows:

	Year Ended December 31,
	2020		2019		2018
	(in millions)
Americas	$	6.1	$	—	$	—
Europe		1.3		4.3		3.4
APMEA		2.4		—		—
Corporate		0.1		—		—
Total	$	9.9	$	4.3	$	3.4

Other Actions

The Company periodically initiates other actions which are not part of a major program. Total “Other Actions” pre-tax restructuring expense was $9.9 million, $4.3 million and $3.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Included in “Other Actions” for the year ended December 31, 2020 were actions taken in the Americas, Europe and APMEA segments and Corporate primarily in response to the COVID-19 pandemic. Also included in “Other Actions” for the years ended 2019 and 2018 were European restructuring activities that were initiated in 2018 and extended through 2019, as discussed below. “Other Actions” also include certain minor initiatives for which the Company incurred restructuring expenses or adjusted prior restructuring reserves in the years ended December 31, 2020, 2019 and 2018.

2020 Other Actions

In the second quarter of 2020, management initiated certain restructuring actions with respect to the Company’s Americas and APMEA segments as well as at Corporate, and in the third quarter of 2020 initiated additional restructuring actions within the Company’s Europe and Americas segments. These actions were primarily in response to the economic challenges related to the COVID-19 pandemic. The restructuring actions included costs mainly for severance benefits due to reductions in force, as well as costs relating to asset write-offs, facility exit and other exit costs. The total pre-tax charge for the 2020 restructuring initiatives is expected to be approximately $10.7 million, of which $10.3 million has been incurred through December 31, 2020. Through December 31, 2020, the Company paid approximately $5.0 million of severance benefits and other related costs. As of December 31, 2020, the restructuring reserve associated with these actions was approximately $4.6 million and primarily related to severance benefits. The remaining expected costs relate to asset write off, facility exit and other exit costs and are expected to be completed in the first half of 2021.

The following table summarizes total expected, incurred and remaining pre-tax restructuring costs for the 2020 restructuring actions:

					Facility
			Asset		exit
	Severance		write-downs		and other		Total
	(in millions)
Costs incurred — 2020	$	8.8	$	0.9	$	0.6	$	10.3
Remaining costs to be incurred		—		0.2		0.2		0.4
Total expected restructuring costs	$	8.8	$	1.1	$	0.8	$	10.7

2018 Other Actions

In the third quarter of 2018, management initiated restructuring actions primarily associated with the European headquarters as well as cost savings initiatives at certain European manufacturing facilities.  These actions included reductions in force and other related costs. Total pre-tax charges for the program were reduced through the twelve months ended December 31, 2020 by approximately $0.3 million due primarily to decreased severance costs. This resulted in total program restructuring charges of approximately $8.0 million, which have been fully incurred. The pre-tax charges for the year ended December 31, 2019 and 2018 were approximately $4.3 million and $4.0 million, respectively and primarily included severance benefits. The restructuring reserve associated with these actions as of December 31, 2020 was approximately $0.5 million, and primarily relates to severance benefits.

2017 Other Actions

In the fourth quarter of 2017, management initiated certain restructuring actions related to reductions in force within the Company’s Europe segment. The restructuring activities primarily included severance benefits. The total pre-tax charges associated with the Europe restructuring activities were initially expected to be approximately $4.1 million with costs being fully incurred in 2017. The company reduced its total pre-tax charges for the program to approximately $3.4 million as of September 30, 2018, primarily related to reduced severance costs. As of December 31, 2019, these actions had been completed and no amounts were reserved associated with these actions.