Restructuring Costs

9 Months Ended

Sep. 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 were 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, which are recorded in “Restructuring Expenses” on the Consolidated Statements of Income, were as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020		2019
Employee separation costs	$	(200	)	$	—	$	17,153	$	—
Lease consolidation expenses	—			—		204		—
Third party and other costs	493			—		11,422		—
Total Restructuring Program Expenses	$	293		$	—	$	28,779	$	—

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	17,151			11,628			28,779
Cash payments	(11,253		)	(14,121		)	(25,374		)
Balance at September 30, 2020	$	7,241		$	287		$	7,528

Note 19. Restructuring - (Continued)

During the three and nine months ended September 30, 2019, the Company recognized a total of $2.2 million and $5.8 million, respectively, of expense in connection with other restructuring activities which have been recorded in “Restructuring Expenses” on the Consolidated Statements of Income.