Restructuring Costs

12 Months Ended

Dec. 29, 2019

Restructuring and Related Activities [Abstract]

Over the past several years, we have engaged in a series of restructuring programs related to exiting certain geographies and non-core businesses, consolidating certain internal support functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and lease termination costs. Management continues to evaluate our business; therefore, in future years, there may be additional provisions for new plan initiatives, as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for certain assets sold, abandoned or made obsolete as a result of these programs.

Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record

liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred.

In February 2019, we began implementing a plan to improve overall business performance that includes the reorganization of our manufacturing capacity and a reduction of our overhead and selling, general and administration workforce across all of our reportable segments and in our head offices. The reorganization of our manufacturing capacity involves specific plants in the North American Residential and Architectural segments and costs associated with the closure of these plants and related headcount reductions began taking place in the first quarter of 2019 (collectively, the "2019 Plan"). Costs associated with the 2019 Plan include severance, retention and closure charges and will continue through 2020. Additionally, the plan to divest non-core assets was determined to be a triggering event requiring a test of the carrying value of the definite-lived assets relating to the divestitures, as further described in Note 14. In the fourth quarter of 2019, we initiated additional restructuring actions related to both manufacturing capacity and reduction of our overhead and selling, general and administration workforce and estimate that such actions will incur an additional $5 million to $6 million. As of December 29, 2019, we expect to incur approximately $6 million to $8 million of additional charges related to the 2019 Plan.

During the fourth quarter of 2018, we began implementing a plan to reorganize and consolidate certain aspects of our United Kingdom head office function and optimize our portfolio by divesting non-core assets to enable more effective and consistent business processes in the Europe segment. In addition, in the North American Residential segment we announced a new facility that will optimize and expand capacity through increased automation, which resulted in the closure of one existing facility and related headcount reductions beginning in the second quarter of 2019 (collectively, the “2018 Plan”). Costs associated with the 2018 Plan included severance, retention and closure charges and continued throughout 2019. Additionally, the plan to divest non-core assets was determined to be a triggering event requiring a test of the carrying value of the definite-lived assets relating to the divestitures, as further described in Note 14. As of December 29, 2019, we do not expect to incur any material future charges related to the 2018 Plan.

Other plans initiated in prior years did not have a material impact on the consolidated statements of comprehensive income or consolidated statements of cash flows for the years ended December 29, 2019, December 30, 2018, or December 31, 2017, or on the consolidated balance sheets as of December 29, 2019, or December 30, 2018.

The following table summarizes the restructuring charges recorded for the periods indicated:



	Year Ended December 29, 2019
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other		Total
2019 Plan	$	5,459	$	396	506		1,019		$	7,380
2018 Plan	$	1,470	$	926	—		—		$	2,396
Total Restructuring Costs	$	6,929	$	1,322	$	506	$	1,019	$	9,776



	Year Ended December 30, 2018
(In thousands)	North American Residential		Europe		Total
2018 Plan	$	275	1,349		$	1,624
Total Restructuring Costs	$	275	$	1,349	$	1,624



	Cumulative Amount Incurred Through
	December 29, 2019
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other		Total
2019 Plan	$	5,459	$	396	$	506	$	1,019	$	7,380
2018 Plan	$	1,745	$	2,275	$	—	$	—	$	4,020
Total Restructuring Costs	$	7,204	$	2,671	$	506	$	1,019	$	11,400

The changes in the accrual for restructuring by activity were as follows for the periods indicated:



(In thousands)	December 30, 2018		Severance		Closure Costs		Cash Payments			December 29, 2019
2019 Plan	$	—	$	5,100	$	2,280	$	(5,845	)	$	1,535
2018 Plan	596		1,995		401		(2,992		)	—
Other	58		—		—		(58		)	—
Total	$	654	$	7,095	$	2,681	$	(8,895	)	$	1,535



(In thousands)	December 31, 2017		Severance		Closure Costs		Cash Payments			December 30, 2018
2018 Plan	$	—	$	859	$	765	$	(1,028	)	$	596
Other	284		—		—		(226		)	58
Total	$	284	$	859	$	765	$	(1,254	)	$	654