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Re-engineering Costs
 12 Months Ended
Dec. 28, 2019
Restructuring and Related Activities [Abstract]  
Re-engineering Costs
Re-engineering Costs
The Company recorded $34.7 million, $15.9 million and $63.7 million in re-engineering charges during 2019, 2018 and 2017, respectively. These re-engineering costs were mainly related to the July 2017 revitalization program ("2017 program") and the transformation program announced in January 2019 ("2019 program"). The Company continually reviews its business models and operating methods for opportunities to increase efficiencies and/or align costs with business performance.
In relation to the 2017 program, the Company incurred $4.5 million, $15.9 million and $63.7 million of charges in 2019, 2018 and 2017, respectively, primarily related to severance costs incurred for headcount reductions in several of the Company’s operations in connection with changes in its management and organizational structures. Under this program, the Company has incurred $84.1 million of pretax costs starting in the second quarter of 2017 through 2019. In addition to the costs outlined below, the Company recorded $0.9 million and $3.6 million in cost of sales for inventory obsolescence in connection with the 2017 program in 2018 and 2017, respectively.
Pretax costs incurred related to the 2017 program by category were as follows:
(In millions)
2019
 
2018
 
2017
Severance
$
4.4

 
$
3.6

 
$
48.1

Other
0.1

 
12.3

 
15.6

Total re-engineering charges
$
4.5

 
$
15.9

 
$
63.7


The re-engineering charges related to the 2017 program by segment were as follows:
(In millions)
2019
 
2018
 
2017
Europe
$
2.7

 
$
10.2

 
$
47.9

Asia Pacific
0.6

 
0.5

 
4.8

North America
1.2

 
3.8

 
11.0

South America
—

 
1.4

 
—

Total re-engineering charges
$
4.5

 
$
15.9

 
$
63.7

The balances included in accrued liabilities related to re-engineering and impairment charges as of December 28, 2019, December 29, 2018, and December 30, 2017 were as follows:
(In millions)
2019
 
2018
 
2017
Beginning balance
$
23.3

 
$
45.4

 
$
1.6

Provision
4.5

 
15.9

 
63.7

Adjustments and other charges
(0.3
)
 
3.0

 
(0.4
)
Cash expenditures:
 
 
 
 
 
Severance
(20.3
)
 
(27.1
)
 
(12.7
)
Other
(3.6
)
 
(12.8
)
 
(6.8
)
Currency translation adjustment
(0.5
)
 
(1.1
)
 
—

Ending balance
$
3.1

 
$
23.3

 
$
45.4


The accrual balance as of December 28, 2019, related primarily to severance payments to be made during 2020.
During 2019, the Company incurred $26.4 million of costs related to the 2019 program, primarily related to severance costs, outside consulting services, project team expenses, and distributor support. In addition to the costs outlined below, the Company recorded $0.9 million and $0.4 million in cost of sales for inventory obsolescence and DS&A for bad debt expense, respectively, in connection with the 2019 program.
Pretax costs incurred related to the 2019 program by category were as follows:
(In millions)
2019
Severance
$
13.1

Other
13.3

Total re-engineering charges
$
26.4

The re-engineering charges related to the 2019 program by segment during 2019 were as follows:
(In millions)
2019
Europe
$
12.4

Asia Pacific
11.1

Other
2.9

Total re-engineering charges
$
26.4


The balances included in accrued liabilities related to the 2019 program as of December 28, 2019 were as follows:
(In millions)
2019
Beginning balance
$
—

Provision
26.4

Adjustments and other charges
(1.7
)
Cash expenditures:
 
Severance
(0.9
)
Other
(10.9
)
Ending balance
$
12.9


The accrual balance as of December 28, 2019, primarily related to severance payments to be made during 2020.
As of the end of December 2017, the Company evaluated the significant inflationary environment, the early 2018 devaluation of the currency in relation to the U.S. dollar and the actual exchange rates being used to conduct business, particularly procurement of resins to manufacture product in Venezuela. The Company concluded, it would use the parallel exchange rate in use in the country, which was approximately 99 percent lower than the official exchange rate that was used in 2017, to value sales and profit beginning of 2018. As a result of this evaluation, the Company recorded an impairment charge of $2.3 million dollars to reduce the carrying value of its long-term fixed assets to zero. This impairment charge was included in the re-engineering and impairment charge caption of the Company's Consolidated Income Statement, but is not a component of the program announced in July 2017. This was deemed a non-recurring, Level 3 measurement within the fair value hierarchy.