Cost Reduction Actions

9 Months Ended

Sep. 26, 2020

Cost Reduction Actions

Cost Reduction Actions

Note 6. Cost Reduction Actions

2019/2020 Actions

During the nine months ended September 26, 2020, we recorded $52.7 million in restructuring charges related to our 2019/2020 actions. These charges consisted of severance and related costs for the reduction of approximately 2,050 positions at numerous locations across our company, which primarily included actions in our Label and Graphic Materials (“LGM”) and RBIS reportable segments. The actions in LGM were primarily associated with the consolidation of our graphics business in Europe, in part in response to COVID-19. The actions in RBIS were primarily related to global headcount and footprint reduction, with some actions accelerated and expanded in response to COVID-19.

During the nine months ended September 26, 2020, restructuring charges and payments were as follows:

			Charges,						Foreign
	Accrual at		Net of		Cash		Non-cash		Currency		Accrual at
(In millions)	December 28, 2019		Reversals		Payments		Impairment		Translation		September 26, 2020
2019/2020 Actions
Severance and related costs	$	21.9	$	46.4	$	(32.3)	$	—	$	1.6	$	37.6
Asset impairment		—		6.2		—		(6.2)		—		—
2018/2019 Actions
Severance and related costs		6.5		—		(6.4)		—		.1		.2
Lease cancellation costs		.3		—		—		—		—		.3
Total	$	28.7	$	52.6	$	(38.7)	$	(6.2)	$	1.7	$	38.1

Accruals for severance and related costs, as well as lease cancellation costs, were included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets, less selling costs, if applicable. Restructuring charges were included in “Other expense (income), net” in the unaudited Condensed Consolidated Statements of Income.

The table below shows the total amount of restructuring charges, net of reversals, incurred by reportable segment and Corporate.

	Three Months Ended				Nine Months Ended
(In millions)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Restructuring charges, net of reversals, by reportable segment and Corporate
Label and Graphic Materials	$	1.4	$	1.2	$	27.6	$	13.9
Retail Branding and Information Solutions		2.9		1.2		16.6		3.4
Industrial and Healthcare Materials		6.6		.9		8.6		4.2
Corporate		—		—		(.2)		—
Total	$	10.9	$	3.3	$	52.6	$	21.5