Restructuring

Restructuring costs include employee termination benefits, fixed asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. These incremental costs principally include equipment and personnel relocation costs. The Company also incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company’s condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded as restructuring actions are approved and/or implemented.

In the first nine months of 2017, the Company recorded charges of $48.6 million in connection with its restructuring actions. These charges consist of $39.5 million recorded as cost of sales, $10.2 million recorded as selling, general and administrative expenses and net credits of $1.1 million recorded as other income. The restructuring charges consist of employee termination costs of $41.0 million, fixed asset impairment charges of $0.4 million, a pension benefit plan settlement loss of $0.8 million and contract termination costs of $1.5 million, as well as other related costs of $4.9 million. Employee termination benefits were recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Fixed asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $0.4 million in excess of related estimated fair values.

The Company expects to incur approximately $36 million of additional restructuring costs related to activities initiated as of September 30, 2017, and expects that the components of such costs will be consistent with its historical experience. Any future restructuring actions will depend upon market conditions, customer actions and other factors.

A summary of 2017 activity, excluding the pension benefit plan settlement loss of $0.8 million (Note 9, "Pension and Other Postretirement Benefit Plans"), is shown below (in millions):



	Accrual as of		2017		Utilization						Accrual as of
	January 1, 2017		Charges		Cash			Non-cash			September 30, 2017
Employee termination benefits	$	69.4	$	41.0	$	(27.7	)	$	—		$	82.7
Asset impairment charges	—		0.4		—			(0.4		)	—
Contract termination costs	4.6		1.5		(1.2		)	—			4.9
Other related costs	—		4.9		(4.9		)	—			—
Total	$	74.0	$	47.8	$	(33.8	)	$	(0.4	)	$	87.6