Restructuring Costs

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring

In the first quarter of 2020, the Company initiated a strategy-driven restructuring plan, Project Be Ready, to simplify the Company’s product portfolio and better align resources with higher growth opportunities while reducing costs. Project Be Ready includes an organizational realignment, targeted workforce reductions, and facility optimization initiatives. All previously approved ongoing restructuring activities that were in process as of January 1, 2020 have been consolidated into Project Be Ready.

The Company expects to incur total costs of approximately $40.0 million to $55.0 million related to Project Be Ready, including approximately $20.0 million to $25.0 million of employee separation costs, approximately $5.0 million to $10.0 million of facility consolidation expenses, and approximately $15.0 million to $20.0 million of third party and other costs. The Company estimates that a majority of the cumulative pretax costs will be cash outlays related to employee separation, facility consolidation, and third-party expenses and that the costs will continue through 2021.

Restructuring expenses related to Project Be Ready were as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Employee separation costs	$	6,888	$	—	$	17,353	$	—
Lease consolidation expenses	—		—		204		—
Third party and other costs	814		—		10,929		—
Total Restructuring Program Expenses	$	7,702	$	—	$	28,486	$	—

During the three and six months ended June 30, 2020, the Company recognized a total of $7.7 million and $28.5 million, respectively, of expense in connection with Project Be Ready which have been recorded in “Restructuring Expenses” on the Consolidated Statements of Income.

The restructuring liability related to Project Be Ready was as follows (in thousands):



	Employee separation costs			Third party and other costs			Total
Balance at December 31, 2019	$	1,343		$	2,780		$	4,123
Accrual and accrual adjustments	17,353			11,133			28,486
Cash payments	(7,603		)	(13,079		)	(20,682		)
Balance at June 30, 2020	$	11,093		$	834		$	11,927

During the three and six months ended June 30, 2019, the Company recognized a total of $3.0 million and $3.6 million, respectively, of expense in connection with other restructuring activities which have been recorded in “Restructuring Expenses” on the Consolidated Statements of Income.