Note 9 Restructuring and Relocation Activities

Consolidation of Restructuring Programs

As reported in our 2015 Form 10-K, our December 2011 Integration and Optimization Program (“IOP”) is substantially complete and did not significantly impact 2016. The May 2013 Earnings Quality Improvement Program (“EQIP”) and the December 2014 Fusion program had significant activity in 2016.

In the first quarter of 2016, the Board of Directors agreed to consolidate the remaining activities of all restructuring programs to create a single program to be called the “Sealed Air Restructuring Program” or the “Program.”

The Program consists of a portfolio of restructuring projects across all of our divisions as part of our transformation of Sealed Air into a knowledge-based company, including reductions in headcount, and relocation of certain facilities and offices, which primarily reflects the relocation of our global headquarters to Charlotte, North Carolina, including the headquarters for our divisions, research and development facilities, and corporate offices. By December 31, 2017, we anticipate approximately 1,300 jobs will have been relocated to Charlotte primarily from our former corporate headquarters in Elmwood Park, New Jersey; and facilities in Saddle Brook, New Jersey; Racine, Wisconsin; and, Duncan and Greenville, South Carolina. The cost of the Charlotte campus is estimated to be approximately $120.0 million.

Program metrics are as follows:

	Sealed Air Restructuring Program
Approximate positions eliminated by the Program		1,950
Estimated Program Costs (in millions):
Costs of reduction in headcount as a result of reorganization	$235-$245
Other expenses associated with the Program	155-160
Total expense	$390-$405
Capital expenditures	250-255
Proceeds, foreign exchange and other cash items	(70)-(75)
Total estimated net cash cost	$570-$585
Program to Date Cumulative Expense (in millions):
Costs of reduction in headcount as a result of reorganization	$	226
Other expenses associated with the Program		105
Total Cumulative Expense	$	331
Cumulative capital expenditures	$	214

The following table details our restructuring activities as reflected in the Statement of Operations for the twelve months ended December 31, 2016, 2015 and 2014:

	Three Years Ended
	December 31,
(In millions)	2016		2015		2014
Other associated costs	$	28.0	$	42.9	$	35.8
Restructuring charges		12.9		78.3		65.7
Total	$	40.9	$	121.2	$	101.5
Capital Expenditures	$	123.5	$	52.0	$	28.0

The restructuring accrual, spending and other activity for the year ended December 31, 2016 and the accrual balance remaining at December 31, 2016 related to the Program were as follows:

(In millions)
Restructuring accrual at December 31, 2015	$	76.3
Accrual and accrual adjustments		12.9
Cash payments during 2016		(39.3	)
Effect of changes in foreign currency exchange rates		(2.5	)
Restructuring accrual at December 31, 2016	$	47.4

We expect to pay $44.8 million of the accrual balance remaining at December 31, 2016 within the next twelve months. This amount is included in accrued restructuring costs on the Consolidated Balance Sheet at December 31, 2016. The majority of the remaining accrual of $2.6 million is expected to be paid in 2018. This amount is included in other non-current liabilities on our Consolidated Balance Sheet at December 31, 2016.