10. Restructuring

During 2017, the Company initiated cost savings plans related to the consolidation and integration of Esselte affecting all three of the Company's segments, but primarily the ACCO Brands EMEA segment. The cost savings initiatives undertaken by the Company in 2016 to further enhance its operations in the ACCO Brands North America segment were expanded during 2017 to include the change in the operating structure in North America, including integration of our former Computer Products Group.

During 2016, the Company initiated cost savings plans related to the consolidation and integration of the acquired Pelikan Artline business into the Company's already existing Australia and New Zealand businesses within the ACCO Brands International segment.

During the first quarter of 2018, the Company approved additional restructuring projects aggregating to $3.5 million, primarily related to changes to the structure in the ACCO Brands North America segment and the continued integration of Esselte in the ACCO Brands EMEA segment. In accordance with GAAP, none of the aforementioned liabilities were recorded in the fourth quarter of 2017.

Consistent with our previous communications about the Esselte Acquisition, the Company currently expects it will record approximately $4 million of incremental restructuring expenses during the remainder of 2018, which is in addition to the $3.5 million of restructuring projects approved during the first quarter of 2018. As integration plans are still being finalized, it is not possible to reasonably estimate the nature or timing of these restructuring and integration charges or the timing of their associated cash outflows.

For the years ended December 31, 2017, 2016 and 2015, we recorded restructuring charges (credits) of $21.7 million, $5.4 million and $(0.4) million, respectively.

The summary of the activity in the restructuring liability (which is included in "Other current liabilities") for the year ended December 31, 2017 was as follows:



(in millions of dollars)	Balance at December 31, 2016		Esselte Acquisition (4)		Provision		Cash Expenditures			Non-cash Items/ Currency Change		Balance at December 31, 2017
Employee termination costs⁽¹⁾	$	1.4	$	1.5	$	18.2	$	(9.6	)	$	0.5	$	12.0
Termination of lease agreements⁽²⁾	0.1		1.2		2.4		(3.1		)	0.2		0.8
Other⁽³⁾	—		0.1		1.1		(0.7		)	—		0.5
Total restructuring liability	$	1.5	$	2.8	$	21.7	$	(13.4	)	$	0.7	$	13.3

(1) We expect the remaining $12.0 million employee termination costs to be substantially paid within the next eighteen months.

(2) We expect the remaining $0.8 million termination of lease costs to be substantially paid within the next fifteen months.

(3) We expect the remaining $0.5 million of other costs to be substantially paid with the next twelve months.

(4) Restructuring liabilities assumed in the Esselte Acquisition.

During the fourth quarter of 2017, in connection with the Pelikan Artline integration, the Company sold its building and related assets in New Zealand for net proceeds of $3.9 million and recorded a gain on sale of $1.5 million as a reduction of SG&A expense in its Consolidated Statements of Income within the ACCO Brands International segment. The sale was not included in the Company’s restructuring liability activity presented above.

The summary of the activity in the restructuring accounts for the year ended December 31, 2016 was as follows:



(in millions of dollars)	Balance at December 31, 2015		PA Acquisition (5)		Provision		Cash Expenditures			Non-cash Items/ Currency Change		Balance at December 31, 2016
Employee termination costs	$	0.9	$	—	$	5.2	$	(4.7	)	$	—	$	1.4
Termination of lease agreements	0.1		—		0.2		(0.2		)	—		0.1
Total restructuring liability	$	1.0	$	—	$	5.4	$	(4.9	)	$	—	$	1.5

(5) Restructuring liabilities assumed in the PA Acquisition.

The summary of the activity in the restructuring accounts for the year ended December 31, 2015 was as follows:



(in millions of dollars)	Balance at December 31, 2014		Acquisitions		Provision/(Credits)			Cash Expenditures			Non-cash Items/ Currency Change			Balance at December 31, 2015
Employee termination costs	$	7.8	$	—	$	(0.6	)	$	(6.0	)	$	(0.3	)	$	0.9
Termination of lease agreements	0.6		—		0.2			(0.7		)	—			0.1
Total restructuring liability	$	8.4	$	—	$	(0.4	)	$	(6.7	)	$	(0.3	)	$	1.0

Restructuring charges (credits) for the years ended December 31, 2017, 2016 and 2015 by reporting segment were as follows:



	December 31,
(in millions of dollars)	2017		2016		2015
ACCO Brands North America	$	5.5	$	1.1	$	(0.4	)
ACCO Brands EMEA	11.2		—		—
ACCO Brands International	5.0		4.3		—
Total restructuring charges (credits)	$	21.7	$	5.4	$	(0.4	)