Restructuring

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

    2020 Restructuring Program

On February 27, 2020, the Company announced that it has formalized the next steps in its efforts to sustain long-term value creation through the proactive transformation of its business. This transformation initiative includes a new global restructuring program. The program is intended to support the Company’s effort to improve operating performance and meet anticipated market demands by ensuring that the Company is appropriately structured and resourced to deliver sustainable value to customers, patients, other stakeholders and shareholders. Key activities under the program include supply chain network optimization intended to maximize the efficiency of the Company’s global manufacturing and distribution network capacity and further optimizing functional capabilities that support business growth.

The Company is currently developing the details of the initiatives, including workforce actions and other restructuring activities. Further details will be disclosed as plans are finalized, including the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures associated with those initiatives. As a result of the COVID-19 pandemic and the related uncertainty and complexity of the current environment, the Company has delayed the implementation of the 2020 restructuring program.

    2016 Restructuring Program

On December 5, 2016, the Company announced a restructuring program representing a series of actions in certain locations that are anticipated to further streamline its operations globally. Since 2015, the Company has made a number of significant acquisitions, and as part of the holistic, global integration of these acquisitions, the Company is focused on how to best optimize and maximize all of its assets across the organization and across all geographies.

Charges for restructuring and ongoing cost reduction initiatives are recorded in the period the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met.

During the second quarter of 2018, the Company commenced comprehensive restructuring and remediation activities, which are aimed at reducing the complexity at the Morgantown, West Virginia plant and include the discontinuation and transfer to other manufacturing sites of a number of products, a reduction of the workforce and extensive process and facility remediation. The restructuring actions other than for this plant are substantially complete. At this time, the total expenses related to the additional restructuring and remediation activities at the Morgantown plant cannot be reasonably estimated.

The following table summarizes the restructuring charges and the reserve activity from December 31, 2019 to September 30, 2020:

(In millions)	Employee Related Costs		Other Exit Costs		Total
Balance at December 31, 2019:	$	26.4	$	2.8	$	29.2
Charges (1)	2.9		4.7		7.6
Cash payment	(6.0)		(0.9)		(6.9)
Utilization	—		(3.7)		(3.7)
Foreign currency translation	(0.4)		(0.1)		(0.5)
Balance at March 31, 2020:	$	22.9	$	2.8	$	25.7
Charges (1)	0.4		23.2		23.6
Cash payment	(3.8)		(3.2)		(7.0)
Utilization	—		(20.0)		(20.0)
Foreign currency translation	0.4		0.1		0.5
Balance at June 30, 2020:	$	19.9	$	2.9	$	22.8
Charges (1)	4.7		9.8		14.5
Cash payment	(3.6)		(2.2)		(5.8)
Utilization	—		(7.5)		(7.5)
Foreign currency translation	—		—		—
Balance at September 30, 2020:	$	21.0	$	3.0	$	24.0

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(1)     For the three months ended September 30, 2020, total restructuring charges in North America, Europe and Rest of World were approximately $11.9 million, $2.3 million and $0.3 million, respectively. For the nine months ended September 30, 2020, total restructuring charges in North America, Europe, Rest of World, and corporate were approximately $19.9 million, $23.7 million, $1.6 million, and $0.5 million, respectively.

At September 30, 2020 and December 31, 2019, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities in the condensed consolidated balance sheets.