Restructuring Activities

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Our restructuring expenses for the three and nine months ended September 30, 2020 and 2019 is summarized in the table below (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Post-Divestiture Restructuring Plan
Cost Transformation	$	0.9	$	0.3	$	2.0	$	1.5
Organizational Alignment & IT Transformation	—		8.1		(0.6)		14.7
Total Post-Divestiture Restructuring Plan	0.9		8.4		1.4		16.2
Integration and Restructuring of Business Acquisitions	0.5		5.3		(0.2)		5.3
Total Restructuring Costs	$	1.4	$	13.7	$	1.2	$	21.5

Post-Divestiture Restructuring Plan

In conjunction with the divestiture of our former Surgical & Infection Prevention business, we began a three-phase restructuring plan (the “Plan”) intended to align our organizational structure (“Organizational Alignment”), information technology platform (“IT Transformation”) and supply chain and distribution channels (“Cost Transformation”) to be more appropriate for the size and scale of our remaining Medical Devices business. Organizational Alignment and IT Transformation are substantially complete. However, in the nine months ended September 30, 2020, employee severance and retention that was previously accrued for Organizational Alignment was reversed due to employee attrition.

Cost Transformation

The Cost Transformation phase was initiated in June 2019, and is intended to optimize the Company’s procurement, manufacturing, and supply chain operations. The Company expects to incur between $11.0 million and $13.0 million of costs to execute the Cost Transformation, primarily consulting and other expenses that will be expensed as incurred. The Company also expects to spend between $8.0 million to $12.0 million of incremental capital through 2021 and expects to complete the Cost Transformation by the end of 2021. Expenses incurred for Cost Transformation are included in “Cost of products sold.” Plan-to-date we have incurred $4.3 million of costs that were expensed as incurred and $1.3 million of costs that were capitalized.

Integration and Restructuring of Business Acquisitions

During the third quarter of 2019, we initiated activities to integrate recent asset and business acquisitions into our operations, and where appropriate, re-align our organization accordingly. We expect to incur up to $11.0 million of costs, primarily for

employee retention, severance and benefits and lease termination costs. Attrition and the resulting reductions in severance and benefits caused a net credit in the nine months ended September 30, 2020. Plan-to-date, we have incurred $8.9 million of expense, included in “Selling and general expenses,” primarily for employee retention, severance, benefits and “Other expense, net” for right-of-use asset impairment. We expect the integration of our acquisitions will be substantially complete by the end of 2020.

Restructuring Liability

We have a liability for employee retention, severance, benefits and other costs associated with our restructuring activities, which is summarized below (in millions):

	Accrual
Balance, December 31, 2019	$	8.5
Charges and adjustments, net	1.2
Payments and other	(7.3)
Balance, September 30, 2020	$	2.4