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Restructuring
9 Months Ended
Sep. 30, 2018
Restructuring And Related Activities [Abstract]  
Restructuring

8. RESTRUCTURING

Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income.

The majority of the reserve balance as of September 30, 2018 pertains to restructuring activities initiated in Western Europe over the past few years. The Company anticipates that its restructuring initiatives in Western Europe for a number of plants, none of which are individually or in the aggregate material as of September 30, 2018, will continue through dates ranging from 2018 through 2021. The total amount of costs expected to be incurred in connection with these restructuring activities ranges from approximately $10 million to $28 million for each individual activity. In the aggregate, the cost for these Western European restructuring initiatives is approximately $101 million and the remaining restructuring liability as of September 30, 2018 is approximately $29 million out of the $32.5 million total reserve balance.

The table below summarizes the change in the balance sheet position of the restructuring reserves related to the continuing operations (dollars in millions).

 

 

 

Three months ended September 30, 2018

 

 

Three months ended September 30, 2017

 

 

 

Restructuring

employee-related

 

 

Restructuring

Other

 

 

Total

 

 

Restructuring

employee-related

 

 

Restructuring

Other

 

 

Total

 

Reserve at beginning of the period

 

$

35.8

 

 

$

0.2

 

 

$

36.0

 

 

$

24.4

 

 

$

0.3

 

 

$

24.7

 

Provision/charge

 

 

0.5

 

 

 

 

 

 

0.5

 

 

 

21.3

 

 

 

 

 

 

21.3

 

Provision/reversal

 

 

 

 

 

 

 

 

 

 

 

(0.4

)

 

 

 

 

 

(0.4

)

Cash payments

 

 

(4.0

)

 

 

 

 

 

(4.0

)

 

 

(4.1

)

 

 

 

 

 

(4.1

)

Translation difference

 

 

0.0

 

 

 

 

 

 

0.0

 

 

 

2.3

 

 

 

(0.1

)

 

 

2.2

 

Reserve at end of the period

 

$

32.3

 

 

$

0.2

 

 

$

32.5

 

 

$

43.5

 

 

$

0.2

 

 

$

43.7

 

 

 

 

Nine months ended September 30, 2018

 

 

Nine months ended September 30, 2017

 

 

 

Restructuring

employee-related

 

 

Restructuring

Other

 

 

Total

 

 

Restructuring

employee-related

 

 

Restructuring

Other

 

 

Total

 

Reserve at beginning of the period

 

$

39.4

 

 

$

0.2

 

 

$

39.6

 

 

$

35.7

 

 

$

0.1

 

 

$

35.8

 

Provision/charge

 

 

4.8

 

 

 

 

 

 

4.8

 

 

 

24.4

 

 

 

0.2

 

 

 

24.6

 

Provision/reversal

 

 

 

 

 

 

 

 

 

 

 

(4.2

)

 

 

 

 

 

(4.2

)

Cash payments

 

 

(10.8

)

 

 

 

 

 

(10.8

)

 

 

(17.0

)

 

 

 

 

 

(17.0

)

Translation difference

 

 

(1.1

)

 

 

 

 

 

(1.1

)

 

 

4.6

 

 

 

(0.1

)

 

 

4.5

 

Reserve at end of the period

 

$

32.3

 

 

$

0.2

 

 

$

32.5

 

 

$

43.5

 

 

$

0.2

 

 

$

43.7