Restructuring Activities

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Our restructuring expenses for the three months and nine months ended September 30, 2021 and 2020 is summarized in the table below (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Post divestiture restructuring plan	$	2.9	$	0.9	$	5.5	$	1.4
Integration and restructuring of business acquisitions	—		0.5		—		(0.2)
2020 Restructuring	1.7		—		10.4		—
Total Restructuring Costs	$	4.6	$	1.4	$	15.9	$	1.2

Post-Divestiture Restructuring Plan

In the fourth quarter of 2018, we began a three-phase restructuring plan (the “Plan”) intended to align our organizational structure, information technology platform and supply chain and distribution channels (“Cost Transformation”) to be more appropriate for the size and scale of our business. Only the final phase of the plan, Cost Transformation, remains in progress, and is expected to be completed by the end of 2021. Expenses incurred for Cost Transformation are included in “Cost of products sold.” Plan-to-date we have incurred $10.6 million of costs that were expensed as incurred and $4.7 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. Costs incurred were primarily for employee retention, severance and benefits and lease termination costs. Cumulative plan expenses were $9.6 million, included in “Selling and general expenses,” primarily for employee retention, severance, benefits and “Other expense, net” for right-of-use asset impairment. The integration of our acquisitions was substantially complete by the end of 2020.

2020 Restructuring

In the fourth quarter of 2020, we initiated activities to reduce the size of our senior leadership team, consolidate certain operations within our pain management franchise, exit unprofitable lines of business and research and development initiatives and reduce the size of our office space to align with expected requirements following the COVID-19 pandemic. Costs incurred will primarily be for operating lease right-of-use impairments or lease terminations, impairment of intangible and other assets and employee severance and benefits. Plan-to-date, we have incurred $38.0 million of expenses, which are included in “Cost of

products sold,” “Selling and general expenses” and “Other expense, net.” We expect to substantially complete this restructuring by the end of 2021.

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, 2020	$	7.2
Total restructuring costs, excluding non-cash charges	9.2
Payments and other	(15.9)
Balance, September 30, 2021	$	0.5