Restructuring

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

RestructuringThe Company has engaged and expects to continue to engage in restructuring activities, which requires management to utilize significant estimates related to the timing and amount of severance and other employee separation costs for workforce reductions and other separation programs and other exit costs associated with restructuring activities. The Company's accrual for severance and other employee separation costs depends on whether the costs result from an ongoing severance plan or are one-time costs. The Company accounts for relevant expenses as severance costs when we have an established severance policy, statutory requirements dictate the severance amounts, or if our historical experience is to routinely provide certain benefits to impacted employees. The Company recognizes severance costs when it is probable that benefits will be paid and the amount can be reasonably estimated. The Company estimates one-time severance and other employee costs related to exit and disposal activities not resulting from an ongoing severance plan based on the benefits available to the employees being terminated. The Company recognizes these costs when we identify the specific classification or functions of the employees being terminated, notify the employees who might be included in the termination, and expect to terminate employees within the legally required notification period. When employees are receiving incentives to stay beyond the legally required notification period, we record the cost of their severance over the remaining service period.

Restructuring costs incurred by reportable business segment for all restructuring activities in continuing operations for the years ended December 31, are as follows (in millions):


	2021		2020		2019
Commercial Solutions	$	4	$	4	$	3
Home Appliances	4		1		2
Home Solutions	3		10		9
Learning and Development	1		3		6
Outdoor and Recreation	3		2		2
Corporate	1		1		5
	$	16	$	21	$	27

Accrued restructuring costs activity for the year ended December 31, 2021 are as follows (in millions):


	Balance at December 31, 2020		Restructuring Costs, Net		Payments		Foreign Currency and Other		Balance at December 31, 2021
Severance and termination costs	$	7	$	13	$	(12)	$	—	$	8
Contract termination and other costs	4		3		(4)		(1)		2
	$	11	$	16	$	(16)	$	(1)	$	10

Accrued restructuring costs activity for the year ended December 31, 2020 are as follows (in millions):


	Balance at December 31, 2019		Restructuring Costs, Net		Payments		Foreign Currency and Other		Balance at December 31, 2020
Severance and termination costs	$	10	$	15	$	(18)	$	—	$	7
Contract termination and other costs	12		6		(9)		(5)		4
	$	22	$	21	$	(27)	$	(5)	$	11

2020 Restructuring Plan

The Company’s 2020 restructuring plan, which was initiated during the second quarter of 2020 largely in response to the impact of the COVID-19 pandemic, was designed to reduce overhead costs, streamline certain underperforming operations and improve future profitability. The restructuring costs, which impact all segments, include employee-related costs, including severance and other termination benefits. In connection with the program, the Company incurred cumulative charges of $29 million since inception, $10 million and $19 million for the years ended December 31, 2021 and 2020, respectively. This restructuring program is substantially complete at the end of 2021 and all cash payments are expected to be paid within one year of charges incurred.

Accelerated Transformation Plan

The Company’s Accelerated Transformation Plan (“ATP”), which was completed at the end of 2019, was designed in part, to divest the Company’s non-core consumer businesses and focus on the realignment of the Company’s management structure and overall cost structure as a result of the completed divestitures. Restructuring costs associated with the ATP included employee-related costs, including severance, retirement and other termination benefits, as well as contract termination costs and other costs. The Company recorded charges of $2 million related to the ATP during 2020. Restructuring charges incurred during 2019 are primarily related to the ATP.

Other Restructuring-Related Costs

The Company regularly incurs other restructuring and restructuring-related costs in connection with various discrete initiatives, including certain costs associated with Project Ovid. Restructuring-related costs are recorded in cost of products sold and SG&A in the Consolidated Statements of Operations based on the nature of the underlying costs incurred.