Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

2020

In 2020, the Company recorded charges of $144.9 million in connection with its restructuring actions. These charges consist of $122.3 million recorded as cost of sales, $16.4 million recorded as selling, general and administrative expenses and $6.2 million recorded as other expense. The restructuring charges consist of employee termination costs of $104.2 million, asset impairment charges of $23.3 million, contract termination costs of $2.0 million and pension benefit plan settlement losses of $12.9 million, as well as other related costs of $2.5 million. Asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $21.3 million in excess of related estimated fair values and the impairment of right-of-use-assets of $2.0 million.

The Company expects to incur approximately $18 million of additional restructuring costs related to activities initiated as of December 31, 2020, 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 2020 activity, excluding the pension benefit plan settlement losses of $12.9 million, is shown below (in millions):

	Accrual as of		2020		Utilization				Accrual as of
	January 1, 2020		Charges		Cash		Non-cash		December 31, 2020
Employee termination benefits	$	152.8	$	104.2	$	(122.2)	$	—	$	134.8
Asset impairments	—		23.3		—		(23.3)		—
Contract termination costs	4.9		2.0		(2.7)		—		4.2
Other related costs	—		2.5		(2.5)		—		—
Total	$	157.7	$	132.0	$	(127.4)	$	(23.3)	$	139.0

2019

In 2019, the Company recorded charges of $183.6 million in connection with its restructuring actions. These charges consist of $173.8 million recorded as cost of sales, $16.4 million recorded as selling, general and administrative expenses and $6.6 million recorded as other income.. The restructuring charges consist of employee termination costs of $167.8 million, asset impairment charges of $9.5 million, contract termination costs of $3.0 million and an other postretirement curtailment gain of $10.6 million, as well as other related costs of $13.9 million. Asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $8.7 million in excess of related estimated fair values and the impairment of right-of-use assets of $0.8 million.

A summary of 2019 activity, excluding the other postretirement curtailment gain of $10.6 million, is shown below (in millions):

	Accrual as of		2019		Utilization				Accrual as of
	January 1, 2019		Charges		Cash		Non-cash		December 31, 2019
Employee termination benefits	$	103.3	$	167.8	$	(118.3)	$	—	$	152.8
Asset impairments	—		9.5		—		(9.5)		—
Contract termination costs	5.4		3.0		(3.5)		—		4.9
Other related costs	—		13.9		(13.9)		—		—
Total	$	108.7	$	194.2	$	(135.7)	$	(9.5)	$	157.7

2018

In 2018, the Company recorded charges of $88.0 million in connection with its restructuring actions. These charges consist of $63.7 million recorded as cost of sales, $24.0 million recorded as selling, general and administrative expenses and $0.3 million recorded as other expense. The restructuring charges consist of employee termination costs of $74.5 million, asset impairment charges of $4.7 million and contract termination costs of $1.5 million, as well as other related costs of $7.3 million. Asset impairment charges relate to the disposal of buildings, leasehold improvements and/or machinery and equipment with carrying values of $4.7 million in excess of related estimated fair values.

A summary of 2018 activity is shown below (in millions):

	Accrual as of		2018		Utilization				Accrual as of
	January 1, 2018		Charges		Cash		Non-cash		December 31, 2018
Employee termination benefits	$	93.0	$	74.5	$	(64.2)	$	—	$	103.3
Asset impairments	—		4.7		—		(4.7)		—
Contract termination costs	5.0		1.5		(1.1)		—		5.4
Other related costs	—		7.3		(7.3)		—		—
Total	$	98.0	$	88.0	$	(72.6)	$	(4.7)	$	108.7