Cost Reduction Actions

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

Note 6. Cost Reduction Actions

2019/2020 Actions

During the six months ended July 3, 2021, we recorded $4.5 million in restructuring charges related to our 2019/2020 actions. These charges consisted of severance and related costs for the reduction of approximately 160 positions at numerous locations across our company, which primarily included actions in our RBIS reportable segment.

The actions were primarily related to global headcount and footprint reductions, with some actions accelerated or expanded in response to the

coronavirus/COVID-19

pandemic

(“COVID-19”).

During the six months ended July 3, 2021, restructuring charges and payments were as follows:


(In millions)	Accrual at January 2, 2021		Charges, Net of Reversals		Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at July 3, 2021
2019/2020 Actions
Severance and related costs	$	28.3	$	4.1	$	(18.2	)	$	—		$	(.5	)	$	13.7
Asset impairment		—		.4		—			(.4	)		—			—
Total	$	28.3	$	4.5	$	(18.2	)	$	(.4	)	$	(.5	)	$	13.7

Accruals for severance and related costs, as well as lease cancellation costs, were included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets, less selling costs, if applicable. Restructuring charges were included in “Other expense (income), net” in the unaudited Condensed Consolidated Statements of Income.

The table below shows the total amount of restructuring charges, net of reversals, incurred by reportable segment and Corporate.


	Three Months Ended						Six Months Ended
(In millions)	July 3, 2021			June 27, 2020			July 3, 2021		June 27, 2020
Restructuring charges, net of reversals, by reportable segment and Corporate
Label and Graphic Materials	$	(.1	)	$	25.8		$	.6	$	26.2
Retail Branding and Information Solutions		1.4			12.2			3.0		13.7
Industrial and Healthcare Materials		.5			1.5			.5		2.0
Corporate		(.1	)		(.2	)		.5		(.2	)
Total	$	1.7		$	39.3		$	4.6	$	41.7