RESTRUCTURING AND IMPAIRMENT CHARGES

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

We implemented various cost reduction initiatives to improve our operating cost structures in the periods presented. These cost initiatives have, among other actions, included workforce reductions and the closure or consolidation of certain operations. Except for the 2018 Restructuring Plan (Plan) discussed below, none of these initiatives has individually resulted in a material charge to earnings.

In December 2018, we committed to the Plan primarily associated with our Furniture Products segment, including the Home Furniture Group (which produces furniture components for the upholstered furniture industry) and the Fashion Bed business (which supplies ornamental beds, bed frames and other accessories sold to retailers). Both of these businesses had underperformed expectations primarily from weaker demand and higher raw material costs. These restructuring activities were substantially complete as of September 30, 2019, including the closure of the Fashion Bed business.

In 2019, we modified the Plan to include three small facilities in the Residential Products segment and one operation in the Industrial Products segment, all of which should be substantially completed by the end of the year.

Our total costs for this Plan are expected to be approximately $30.0. To date we have incurred costs of $26.4, and we expect to incur $3.6 during the remainder of the year. The following table presents information associated with this Plan:



	Total Amount Incurred to Date		Nine Months Ended September 30, 2019		Total Incurred Full Year 2018
2018 Restructuring Plan
Restructuring and restructuring-related	$	15.8	$	4.6	$	11.2
Impairment costs associated with this plan	10.6		5.5		5.1
	$	26.4	$	10.1	$	16.3
Amount of total that represents cash charges	$	12.1	$	5.2	$	6.9

The table below presents all restructuring and restructuring-related activity for the periods presented; the majority of the 2019 costs are related to the Plan:



	Nine Months Ended September 30,					Three Months Ended September 30,
	2019			2018		2019			2018
Charged to other (income) expense, net:
Severance and other restructuring costs	$	5.3		$	.8	$	3.4		$	.5
Charged to cost of goods sold:
Inventory obsolescence and other	(.6		)	.2		(.9		)	.7
Total restructuring and restructuring-related costs	$	4.7		$	1.0	$	2.5		$	1.2
Amount of total that represents cash charges	$	5.3		$	.8	$	3.4		$	.5

Restructuring and restructuring-related charges by segment were as follows:



	Nine Months Ended September 30,				Three Months Ended September 30,
	2019		2018		2019		2018
Residential Products	$	1.5	$	.5	$	1.4	$	.5
Industrial Products	.6		.2		.6		.7
Furniture Products	2.6		.3		.5		—
Total	$	4.7	$	1.0	$	2.5	$	1.2

The accrued liability associated with our total restructuring initiatives consisted of the following:



	Balance at December 31, 2018		Add: 2019 Charges		Less: 2019 Payments		Balance at September 30, 2019
Severance costs	$	6.6	$	3.0	$	5.9	$	3.7
Contract termination costs	—		.4		.1		.3
Other restructuring costs	.6		1.9		1.7		.8
	$	7.2	$	5.3	$	7.7	$	4.8

Impairment charges

Impairment charges are reported in “Impairments” in the Consolidated Condensed Statements of Operations and are summarized in the following table:



	Nine Months Ended September 30,				Three Months Ended September 30,
	2019		2018		2019		2018
	Other Long-Lived Assets Impairments		Other Long-Lived Assets Impairments		Other Long-Lived Assets Impairments		Other Long-Lived Assets Impairments
Residential Products	$	.9	$	—	$	.7	$	—
Industrial Products	—		.3		—		.1
Furniture Products	4.8		—		.7		—
Total impairment charges	$	5.7	$	.3	$	1.4	$	.1

We test other long-lived assets for recoverability at year end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value and the resulting impairment charges noted above were based primarily upon offers from potential buyers or third-party estimates of fair value less selling costs and estimated future cash flows.