XML 35 R19.htm IDEA: XBRL DOCUMENT v3.20.4
Restructuring
12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring

12. 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 its existing credit facilities. The Company does not expect that the execution of these programs will have an 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 restructuring reserve balance is included within Accrued expenses in the Consolidated Balance Sheet.

 

2020

 

The Company recorded restructuring charges in 2020, mainly related to the structural efficiency program initiated in the second quarter of 2020 in the Americas and Europe and footprint optimization activities in Europe initiated in the third quarter of 2020. Cash payments mainly related to the structural efficiency program initiated in 2019. As of December 31, 2020, approximately $57 million out of the $125.9 million in total reserve balance can be attributed to the structural efficiency program initiated in the second quarter of 2020. This program is expected to be concluded in 2021. Approximately $36 million of the balance can be attributed to footprint optimization activities in Europe initiated in the third quarter of 2020. This program is expected to be concluded in 2023.

 

 

 

December 31

 

 

Provision/

 

 

Provision/

 

 

Cash

 

 

Translation

 

 

December 31

 

 

 

2019

 

 

Charge

 

 

Reversal

 

 

payments

 

 

difference

 

 

2020

 

Restructuring employee-related

 

$

55.9

 

 

$

108.5

 

 

$

(10.1

)

 

$

(38.4

)

 

$

9.5

 

 

$

125.4

 

Other

 

 

0.2

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.0

 

 

 

0.5

 

Total reserve

 

$

56.1

 

 

$

108.8

 

 

$

(10.1

)

 

$

(38.4

)

 

$

9.5

 

 

$

125.9

 

 

2019

The provision recorded in 2019 of $56.9 million mainly related to the Structural efficiency program initiated in the second quarter of 2019. The total cost of the Structural efficiency program was expected to be $52.0 million, and as of December 31, 2019, approximately $23 million out of the $56.1 million total reserve balance could be attributed to these activities. The remaining balance related to older restructuring programs, primarily in Western Europe. Cash payments in 2019 mainly related to the Structural efficiency program initiated in 2019. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2018 to December 31, 2019 (dollars in millions).

 

 

 

December 31

 

 

Provision/

 

 

Provision/

 

 

Cash

 

 

Translation

 

 

December 31

 

 

 

2018

 

 

Charge

 

 

Reversal

 

 

payments

 

 

difference

 

 

2019

 

Restructuring employee-related

 

$

33.2

 

 

$

56.9

 

 

$

(3.0

)

 

$

(30.3

)

 

$

(0.9

)

 

$

55.9

 

Other

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

0.0

 

 

 

0.2

 

Total reserve

 

$

33.4

 

 

$

56.9

 

 

$

(3.0

)

 

$

(30.3

)

 

$

(0.9

)

 

$

56.1

 

 

 

2018

In 2018, the restructuring provisions and cash payments related mainly to headcount reductions in high-cost countries in Western Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2017 to December 31, 2018 (dollars in millions).

 

 

 

December 31

 

 

Provision/

 

 

Provision/

 

 

Cash

 

 

Translation

 

 

December 31

 

 

 

2017

 

 

Charge

 

 

Reversal

 

 

payments

 

 

difference

 

 

2018

 

Restructuring employee-related

 

$

39.4

 

 

$

9.0

 

 

$

(0.1

)

 

$

(13.6

)

 

$

(1.5

)

 

$

33.2

 

Other

 

 

0.2

 

 

 

0.2

 

 

 

 

 

 

 

 

 

(0.2

)

 

 

0.2

 

Total reserve

 

$

39.6

 

 

$

9.2

 

 

$

(0.1

)

 

$

(13.6

)

 

$

(1.7

)

 

$

33.4