Restructuring charges

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring charges

7. Restructuring charges

Restructuring charges relate to the implementation of several regional strategic initiatives aimed at streamlining the Company’s cost structure and improving its operations. These actions primarily resulted in workforce reductions and other facility rationalization costs. Restructuring charges are recorded in other operating expenses, net in the condensed consolidated statement of operations.

2020 Restructuring

During the first quarter of 2020, management approved a plan to implement a new structure designed to streamline and accelerate the opportunities between Canada and USA operations with the reporting structure in Canada condensed and realigned to report under the leadership in the USA for commercial, operations, human resources and finance. This change did not impact the Company's reportable segments. All restructuring actions under this program were complete as of June 30, 2020, except for final cash payments that will be made in the future.

During the second quarter of 2020, the Company initiated workforce reductions spanning across many job functions and locations in the USA and Other in order to align the Company's workforce with its anticipated business needs. The actions associated with this program are expected to be completed by the end of 2020. As a result of both of these plans, we recorded the following charges:

(in millions)	Three months ended June 30, 2020		Six months ended June 30, 2020		Anticipated total costs
USA:
Employee termination costs	$	4.7	$	4.7	$	5.9
Canada:
Employee termination costs	$	0.8	$	3.1	$	3.1
Other:
Employee termination costs	$	0.8	$	0.8	$	0.8
Total	$	6.3	$	8.6	$	9.8

2018 Restructuring

During 2018, management approved a plan to consolidate departments. The actions associated with this program were substantially complete as of March 31, 2020, although cash payments will be made into the future. The following table presents a summary of the financial impacts of that plan:

(in millions)	Three months ended March 31, 2020		Cumulative costs		Anticipated total costs
USA:
Employee termination costs	$	0.1	$	5.6	$	5.6
Other exit costs	—		0.1		0.1
Total	$	0.1	$	5.7	$	5.7
Other:
Employee termination costs	$	0.1	$	1.3	$	1.3
Total:
Employee termination costs	$	0.2	$	6.9	$	6.9
Other exit costs	—		0.1		0.1
Total	$	0.2	$	7.0	$	7.0

The following table summarizes activity related to accrued liabilities associated with restructuring:

(in millions)	January 1, 2020		Charge to  earnings		Cash paid		June 30, 2020
Employee termination costs	$	3.7	$	8.8	$	(6.9)	$	5.6
Facility exit costs	1.9		—		(0.6)		1.3
Other exit costs	0.2		—		—		0.2
Total	$	5.8	$	8.8	$	(7.5)	$	7.1

(in millions)	January 1, 2019		Charge to  earnings		Cash  paid		December 31, 2019
Employee termination costs	$	4.2	$	2.5	$	(3.0)	$	3.7
Facility exit costs	5.0		0.1		(3.2)		1.9
Other exit costs	0.2		—		—		0.2
Total	$	9.4	$	2.6	$	(6.2)	$	5.8

Restructuring liabilities of $6.6 million and $5.3 million were classified as current in other accrued expenses in the condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively. The long-term portion of restructuring liabilities of $0.5 million were recorded in other long-term liabilities in the condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, and primarily consists of facility exit costs that are expected to be paid within the next five years.

The cost information above does not contain any estimates for programs that may be developed and implemented in future periods. While the Company believes the recorded restructuring liabilities are adequate, revisions to current estimates may be recorded in future periods based on new information as it becomes available.