Severance and Restructuring Expenses

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

To align its business to current market conditions, during the three and nine months ended September 30, 2020, the Company recognized $1.6 million and $7.7 million of pre-tax severance and restructuring expenses, respectively. Charges recognized during the three months ended September 30, 2020, were comprised of $1.6 million severance costs, as well as a corresponding $0.3 million tax benefit related to these expenses. Charges recognized during the nine months ended September 30, 2020, were comprised of $6.8 million severance costs and $0.9 million of other restructuring expenses, as well as a corresponding $1.4 million tax benefit related to these expenses.

Of the $1.6 million expense recognized during the three months ended September 30, 2020, $0.5 million was related to the North America segment and $1.1 million was related to the Rest of World segment. Of the $7.7 million expense recognized during the nine months ended September 30, 2020, $2.7 million was related to the North America segment and $5.0 million was related to the Rest of World segment. The Company’s severance and restructuring actions were primarily completed in the nine months ended September 30, 2020.

The following table summarizes the activity in the Company’s accrual for severance and restructuring expenses incurred during the three and nine months ended September 30, 2020:


(dollars in millions)	Severance Expenses		Restructuring Expenses		Total
Accrued severance and restructuring expenses, March 31, 2020	$	—	$	—	$	—
Charges	5.2		0.9		6.1
Cash Payments	(2.2)		(0.3)		(2.5)
Accrued severance and restructuring expenses, June 30, 2020	$	3.0	$	0.6	$	3.6
Charges	1.6		—		1.6
Cash Payments	(2.0)		(0.5)		(2.5)
Accrued severance and restructuring expenses, September 30, 2020	$	2.6	$	0.1	$	2.7