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Restructuring Costs | 9 Months Ended
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Sep. 30, 2017
Restructuring and Related Activities [Abstract] |
Restructuring Costs | Footnote 5 — Restructuring Costs Restructuring Costs Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring amounts also include amounts recognized as incurred. As part of the Jarden Acquisition, the Company initiated a comprehensive strategic assessment of the business and launched a new corporate strategy that focuses the portfolio, prioritizes investment in the categories with the greatest potential for growth, and extends the Company’s advantaged capabilities in insights, product design, innovation, and E-commerce to the broadened portfolio. The investments in new capabilities are designed to unlock the growth potential of the portfolio and will be funded by a commitment to release cost savings from 2016 to 2021 of approximately $1.3 billion through the combination of the completion of Project Renewal (approximately $300 million) and delivery of cost synergies associated with the Jarden integration (approximately $1 billion). This new corporate strategy is called the New Growth Game Plan and builds on the successful track record of growth acceleration, margin development, and value creation associated with the transformation of Newell Rubbermaid from 2011 through 2016. Project Renewal In April 2015, the Company committed to a further expansion of Project Renewal (the “April 2015 Expansion”). Project Renewal was initially launched in October 2011 to reduce the complexity of the organization and increase investment in growth platforms within the business. Under Project Renewal, the Company is simplifying and aligning its businesses around two key activities—Brand & Category Development and Market Execution & Delivery. Pursuant to an expansion of Project Renewal in October 2014, the Company is: (i) further streamlining its supply chain function, including reducing overhead and realigning the supply chain management structure; (ii) investing in value analysis and value engineering efforts to reduce product and packaging costs; (iii) reducing operational and manufacturing complexity in its Learn segment; and (iv) further streamlining its distribution and transportation functions. Under the April 2015 Expansion, the Company is further implementing additional activities designed to further streamline business partnering functions (e.g., Finance/IT, Legal and Human Resources), optimize global selling and trade marketing functions and rationalize the Company’s real estate portfolio. Project Renewal is expected to be complete by the end of 2017, and as a result, additional cash payments and savings will be realized thereafter. Restructuring costs incurred in connection with Project Renewal for the periods indicated are as follows (in millions):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Employee severance, termination benefits and relocation costs |  | $ | 0.2 |  |  | $ | 1.4 |  |  | $ | 1.8 |  |  | $ | (4.0 | )
Exited contractual commitments and other |  |  | 7.2 |  |  |  | (1.6 | ) |  |  | 15.9 |  |  |  | 17.0 |
|  | $ | 7.4 |  |  | $ | (0.2 | ) |  | $ | 17.7 |  |  | $ | 13.0 |
Accrued restructuring costs activity for Project Renewal for the nine months ended September 30, 2017 is as follows (in millions):
|  | Balance at December 31, 2016 |  |  | Restructuring Costs |  |  | Payments |  |  | Non-Cash Charges and Other |  |  | Balance at September 30, 2017 |
Employee severance, termination benefits and relocation costs |  | $ | 15.8 |  |  | $ | 1.8 |  |  | $ | (6.3 | ) |  | $ | (0.2 | ) |  | $ | 11.1 |
Exited contractual commitments and other |  |  | 17.4 |  |  |  | 15.9 |  |  |  | (7.5 | ) |  |  | — |  |  |  | 25.8 |
|  | $ | 33.2 |  |  | $ | 17.7 |  |  | $ | (13.8 | ) |  | $ | (0.2 | ) |  | $ | 36.9 |
Jarden Integration The Company currently expects to incur up to approximately $1.0 billion of restructuring and other costs through 2021 to integrate the legacy Newell Rubbermaid and Jarden businesses (the “Jarden Integration”). Initially, integration projects will primarily be focused on driving cost synergies in procurement, overhead functions and organizational changes designed to redefine the operating model of the Company from a holding company to an operating company. Restructuring costs associated with integration projects are expected to include employee-related cash costs, including severance, retirement and other termination benefits, and contract termination and other costs. In addition, other costs associated with the Jarden Integration are expected to include advisory and personnel costs for managing and implementing integration projects. Other Restructuring In addition to Project Renewal and the Jarden Integration the Company has incurred restructuring costs for various other restructuring activities. Accrued restructuring cost activity for the Jarden Integration and other restructuring for the nine months ended September 30, 2017 is as follows (in millions):
|  | Balance at December 31, 2016 |  |  | Restructuring Costs |  |  | Payments |  |  | Non-Cash Charges and Other |  |  | Balance at September 30, 2017 |
Employee severance, termination benefits and relocation costs |  | $ | 38.2 |  |  | $ | 50.3 |  |  | $ | (40.1 | ) |  | $ | (8.6 | ) |  | $ | 39.8 |
Exited contractual commitments and other |  |  | 0.5 |  |  |  | 14.2 |  |  |  | (8.5 | ) |  |  | (0.1 | ) |  |  | 6.1 |
|  | $ | 38.7 |  |  | $ | 64.5 |  |  | $ | (48.6 | ) |  | $ | (8.7 | ) |  | $ | 45.9 |
Restructuring Costs Restructuring costs incurred by reportable business segment for all restructuring activities in continuing operations for the periods indicated are as follows (in millions):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Live |  | $ | 3.0 |  |  | $ | 2.9 |  |  | $ | 10.7 |  |  | $ | 2.3 |
Learn |  |  | 3.0 |  |  |  | 3.7 |  |  |  | 8.8 |  |  |  | 8.8 |
Work |  |  | 1.6 |  |  |  | 1.7 |  |  |  | 7.0 |  |  |  | 4.3 |
Play |  |  | 1.6 |  |  |  | 2.3 |  |  |  | 10.6 |  |  |  | 2.6 |
Other |  |  | 1.4 |  |  |  | 1.3 |  |  |  | 5.0 |  |  |  | 6.4 |
Corporate |  |  | 27.8 |  |  |  | 1.1 |  |  |  | 40.1 |  |  |  | 17.3 |
|  | $ | 38.4 |  |  | $ | 13.0 |  |  | $ | 82.2 |  |  | $ | 41.7 |

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- References No definition available. + Details
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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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