Restructuring Costs

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring amounts also include amounts recognized as incurred.

Restructuring costs, net incurred by reportable business segments for all restructuring activities in continuing operations for the periods indicated are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Appliances and Cookware	$	1	$	—	$	1	$	2
Commercial Solutions	—		—		2		1
Home Solutions	1		1		6		7
Learning and Development	1		—		2		5
Outdoor and Recreation	1		1		2		2
Corporate	—		1		1		5
	$	4	$	3	$	14	$	22

Accrued restructuring costs activity for the nine months ended September 30, 2020 are as follows (in millions):


	Balance at December 31, 2019		Restructuring Costs, Net		Payments		Balance at September 30, 2020
Employee severance and termination benefits	$	10	$	12	$	(14)	$	8
Exited contractual commitments and other	12		2		(7)		7
	$	22	$	14	$	(21)	$	15

2020 Restructuring Plan

The Company’s 2020 restructuring program, which was initiated during the second quarter of 2020 largely in response to the impact of the COVID-19 pandemic, was designed to reduce overhead costs, streamline certain underperforming operations and improve future profitability. The restructuring costs, which impact all segments, include employee-related costs, including severance and other termination benefits. During the three and nine months ended September 30, 2020, the Company recorded restructuring charges of $4 million and $12 million, respectively, in connection with the program. The Company currently estimates aggregate restructuring charges of approximately $20 million to $25 million to be incurred over the entirety of 2020 and into 2021 in connection with the program. All cash payments are expected to be paid within one year of charges incurred.

Accelerated Transformation Plan

The Company’s ATP, which was initiated during the first quarter of 2018 and completed at the end of 2019, was designed in part, to divest the Company’s non-core consumer businesses and focus on the realignment of the Company’s management structure and overall cost structure as a result of the completed divestitures. Restructuring costs associated with the ATP included employee-related costs, including severance, retirement and other termination benefits, as well as contract termination costs and other costs.

Other Restructuring-Related Costs

The Company regularly incurs other restructuring-related costs in connection with various discrete initiatives which are recorded in cost of products sold and selling, general and administrative expense (“SG&A”) in the Condensed Consolidated Statements of Operations based on the nature of the underlying costs incurred.