Management Actions

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Management Actions

4.

Management Actions

Restructuring Actions

In March 2020, we implemented a restructuring action in an effort to streamline our operating model in Japan. The pre-tax charge of $0.8 million in the first quarter of 2020 consisted of severance and was included in Selling and Administrative Expense in the Consolidated Statements of Earnings. We expect to incur up to $2 million of costs related to this restructuring. The charge impacted our Asia Pacific (APAC) operating segment. We estimate the savings will offset the pre-tax charge approximately one year from the date of the action.

During 2019, we implemented a restructuring action to further our integration efforts related to the IPC Group. The pre-tax charge of $4.8 million consisting of severance was included, with $0.3 million in Cost of Sales and $4.5 million in Selling and Administrative Expense in the Consolidated Statements of Earnings. The charge impacted our Europe, Middle East and Africa (EMEA) as well as our Americas operating segments. We expect no further charges related to this restructuring action. We estimate the savings have offset the pre-tax charges incurred to date.

A reconciliation of the beginning and ending liability balances is as follows:

	Severance and Related Costs
December 31, 2018 balance	$	2.2
2019 charges and utilization:
New charges	6.1
Cash payments	(2.5		)
Adjustments to accrual	(1.3		)
December 31, 2019 balance	$	4.5
2020 charges and utilization:
New charges	0.8
Cash payments	(0.9		)
March 31, 2020 balance	$	4.4

Other Actions

In 2019, we made the decision to discontinue certain product lines. During the first quarter of 2020, we recorded an additional $1.7 million in Cost of Sales to reflect our estimate of inventory that will not be sold.