Restructuring Costs

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Costs

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.

Note 19.     Restructuring - (Continued)

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
	March 31,
	2021		2020
Employee separation costs	$	276	$	10,465
Lease consolidation expenses	—		204
Third party and other costs	346		10,115
Total Restructuring Program Expenses	$	622	$	20,784

The restructuring liability related to Project Be Ready for the three months ended March 31, 2021 was as follows (in thousands):

	Employee separation costs		Third party and other costs		Total
Balance at December 31, 2020	$	4,217	$	267	$	4,484
Accrual and accrual adjustments	276		346		622
Cash payments	(1,387)		(576)		(1,963)
Balance at March 31, 2021	$	3,106	$	37	$	3,143