Restructuring Costs

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring

The Company had various active restructuring programs focused on reorganization and discontinuation of certain businesses, targeted workforce reductions, and facility consolidation actions. These targeted reductions enabled the Company to better align its resources in areas providing the greatest benefit in the current business environment. 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):

	Year Ended December 31,
	2020		2019
Employee separation costs	$	18,427	$	—
Lease consolidation expenses	204		—
Third party and other costs	11,844		—
Total Restructuring Program Expenses	$	30,475	$	—

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

Note 21.    Restructuring - (Continued)

	Employee separation costs		Third party and other costs		Total
Balance at December 31, 2019	$	1,343	$	2,780	$	4,123
Accrual and accrual adjustments	18,427		12,048		30,475
Cash payments	(15,553)		(14,561)		(30,114)
Balance at December 31, 2020	$	4,217	$	267	$	4,484

During the years ended December 31, 2019 and 2018, the Company recorded net pre-tax restructuring charges in connection with other restructuring activities totaling approximately $10.1 million and $4.9 million, respectively, which primarily represented employee termination benefits and costs to consolidate, relocate or discontinue operations. In addition, during the year ended December 31, 2019 the Company incurred goodwill and intangible asset impairment charges totaling approximately $6.5 million and $1.2 million, respectively, related to the other restructuring actions. Inventory write-downs associated with the other restructuring actions were also incurred and totaled $5.9 million and $3.3 million for the years ended December 31, 2019 and 2018, respectively. Refer to Note 9, "Goodwill," Note 10, "Intangibles Assets," and Note 6, "Inventories," for further discussion.

Accrued restructuring balances were recorded as a current liability within “Accrued payroll and related benefits” on the Consolidated Balance Sheets and not deemed material as of December 31, 2019.