Company Quick10K Filing
Treehouse Foods
Price54.52 EPS-7
Shares56 P/E-8
MCap3,069 P/FCF67
Net Debt2,169 EBIT-349
TEV5,239 TEV/EBIT-15
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-13
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-02-14
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-02-20
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-16
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-18
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-19
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-02-20
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-02-21
10-Q 2012-09-30 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-02-21
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-05
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-02-15
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-02-16
8-K 2020-09-09 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-08-25 Other Events, Exhibits
8-K 2020-08-25 Enter Agreement, Other Events, Exhibits
8-K 2020-08-06 Earnings, Exhibits
8-K 2020-05-07
8-K 2020-04-30
8-K 2020-04-06
8-K 2020-04-01
8-K 2020-02-26
8-K 2020-02-13
8-K 2020-01-13
8-K 2019-12-23
8-K 2019-11-07
8-K 2019-11-06
8-K 2019-10-22
8-K 2019-08-02
8-K 2019-08-01
8-K 2019-07-08
8-K 2019-05-02
8-K 2019-04-25
8-K 2019-02-19
8-K 2019-02-14
8-K 2019-02-01
8-K 2018-11-01
8-K 2018-09-04
8-K 2018-08-02
8-K 2018-06-11
8-K 2018-05-21
8-K 2018-05-03
8-K 2018-04-26
8-K 2018-03-02
8-K 2018-02-21
8-K 2018-02-20
8-K 2018-02-15

THS 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-15.1 thsq22020ex151.htm
EX-22 thsq22020ex22.htm
EX-31.1 thsq22020ex311.htm
EX-31.2 thsq22020ex312.htm
EX-32.1 thsq22020ex321.htm
EX-32.2 thsq22020ex322.htm

Treehouse Foods Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
2.51.91.30.80.2-0.42012201420172020
Rev, G Profit, Net Income
2.61.81.00.2-0.6-1.42012201420172020
Ops, Inv, Fin

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
 
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended June 30, 2020.
or
 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Transition Period from                to
Commission File Number 001-32504
TreeHouse Foods, Inc.
(Exact name of the registrant as specified in its charter)
 newthslogo.jpg
Delaware
 
 
20-2311383
(State or other jurisdiction of incorporation or organization)
 
 
(I.R.S. employer identification no.)
 
 
 
 
2021 Spring Road, Suite 600
Oak Brook
IL
60523
(Address of principal executive offices)
 
 
(Zip Code)
(Registrant’s telephone number, including area code) (708483-1300

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
THS
NYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
 
 
 
 
Non-accelerated filer
Smaller reporting company
(Do not check if a smaller reporting company)
 
 
 
 
 
 
Emerging growth company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes     No  
Number of shares of Common Stock, $0.01 par value, outstanding as of July 31, 2020: 56,499,463.

1



Table of Contents
 


2



Part I — Financial Information
Item 1. Financial Statements
TREEHOUSE FOODS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions, except per share data)
 
 
June 30, 2020
 
December 31, 2019
Assets
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
293.9

 
$
202.3

Receivables, net
 
265.1

 
270.6

Inventories
 
629.4

 
544.0

Prepaid expenses and other current assets
 
94.1

 
44.5

Assets held for sale
 

 
27.0

Assets of discontinued operations
 
122.7

 
131.1

Total current assets
 
1,405.2


1,219.5

Property, plant, and equipment, net
 
1,014.3

 
1,045.2

Operating lease right-of-use assets
 
161.6

 
175.3

Goodwill
 
2,102.1

 
2,107.3

Intangible assets, net
 
524.8

 
554.7

Other assets, net
 
34.0

 
37.4

Total assets
 
$
5,242.0


$
5,139.4

Liabilities and Stockholders’ Equity
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
558.4

 
$
508.4

Accrued expenses
 
370.6

 
273.2

Current portion of long-term debt
 
15.4

 
15.3

Liabilities of discontinued operations
 
7.3

 
16.5

Total current liabilities
 
951.7


813.4

Long-term debt
 
2,086.6

 
2,091.7

Operating lease liabilities
 
145.1

 
158.5

Deferred income taxes
 
123.2

 
101.5

Other long-term liabilities
 
131.7

 
143.4

Total liabilities
 
3,438.3


3,308.5

Commitments and contingencies (Note 14)
 


 


Stockholders’ equity:
 
 

 
 

Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued
 

 

Common stock, par value $0.01 per share, 90.0 shares authorized, 56.5 and 56.2 shares issued and outstanding, respectively
 
0.6

 
0.6

Treasury stock
 
(83.3
)
 
(83.3
)
Additional paid-in capital
 
2,168.4

 
2,154.6

Accumulated deficit
 
(189.7
)
 
(157.0
)
Accumulated other comprehensive loss
 
(92.3
)
 
(84.0
)
Total stockholders’ equity
 
1,803.7


1,830.9

Total liabilities and stockholders’ equity
 
$
5,242.0


$
5,139.4





See Notes to Condensed Consolidated Financial Statements.

3



TREEHOUSE FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions, except per share data)
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Net sales
 
$
1,041.9

 
$
1,025.3

 
$
2,126.8

 
$
2,092.1

Cost of sales
 
850.7

 
836.1

 
1,740.7

 
1,706.7

Gross profit
 
191.2


189.2


386.1


385.4

Operating expenses:
 
 
 
 
 
 
 
 
Selling and distribution
 
63.0

 
59.8

 
128.1

 
130.0

General and administrative
 
73.7

 
86.1

 
137.3

 
148.4

Amortization expense
 
17.4

 
18.6

 
34.9


38.7

Other operating expense, net
 
11.8

 
32.6

 
30.3

 
60.7

Total operating expenses
 
165.9


197.1


330.6


377.8

Operating income (loss)
 
25.3


(7.9
)

55.5


7.6

Other expense:
 
 
 
 
 
 
 
 
Interest expense
 
26.2

 
26.1

 
51.0

 
51.2

(Gain) loss on foreign currency exchange
 
(6.5
)
 
(1.3
)
 
7.9

 
(1.7
)
Other (income) expense, net
 
(5.6
)
 
24.2

 
58.4

 
36.4

Total other expense
 
14.1


49.0


117.3


85.9

Income (loss) before income taxes
 
11.2

 
(56.9
)
 
(61.8
)
 
(78.3
)
Income tax expense (benefit)
 
13.8

 
(6.8
)
 
(26.4
)
 
(13.7
)
Net loss from continuing operations
 
(2.6
)
 
(50.1
)
 
(35.4
)
 
(64.6
)
Net income (loss) from discontinued operations
 
1.1

 
(121.7
)
 
2.7

 
(134.1
)
Net loss
 
$
(1.5
)

$
(171.8
)

$
(32.7
)

$
(198.7
)
 
 
 
 
 
 
 
 
 
Earnings (loss) per common share - basic:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.05
)
 
$
(0.89
)
 
$
(0.63
)
 
$
(1.15
)
Discontinued operations
 
0.02

 
(2.16
)
 
0.05

 
(2.39
)
Loss per share basic (1)
 
$
(0.03
)
 
$
(3.05
)
 
$
(0.58
)
 
$
(3.54
)
 
 
 
 
 
 
 
 
 
Earnings (loss) per common share - diluted:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.05
)
 
$
(0.89
)
 
$
(0.63
)
 
$
(1.15
)
Discontinued operations
 
0.02

 
(2.16
)
 
0.05

 
(2.39
)
Loss per share diluted (1)
 
$
(0.03
)
 
$
(3.05
)
 
$
(0.58
)
 
$
(3.54
)
 
 
 
 
 
 
 
 
 
Weighted average common shares:
 
 
 
 
 
 
 
 
Basic
 
56.5

 
56.3

 
56.4

 
56.2

Diluted
 
56.5

 
56.3

 
56.4

 
56.2



(1)
The sum of the individual per share amounts may not add due to rounding.







See Notes to Condensed Consolidated Financial Statements.

4



TREEHOUSE FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)  
(Unaudited, in millions) 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Net loss
 
$
(1.5
)
 
$
(171.8
)
 
$
(32.7
)
 
$
(198.7
)
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
7.4

 
7.2

 
(8.5
)
 
14.0

Pension and postretirement reclassification adjustment
 
0.1

 
0.2

 
0.2

 
0.3

Other comprehensive income (loss)
 
7.5

 
7.4

 
(8.3
)
 
14.3

Comprehensive income (loss)
 
$
6.0


$
(164.4
)

$
(41.0
)

$
(184.4
)
 






































See Notes to Condensed Consolidated Financial Statements.

5



TREEHOUSE FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited, in millions)
 
 
 
 
 
 
 
 
Retained
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
 
Additional
 
Earnings
 
 
 
Other
 
 
 
 
Common Stock
 
Paid-In
 
(Accumulated
 
Treasury Stock
 
Comprehensive
 
Total
 
 
Shares
 
Amount
 
Capital
 
Deficit)
 
Shares
 
Amount
 
Loss
 
Equity
Balance, January 1, 2019
 
57.8

 
$
0.6

 
$
2,135.8

 
$
204.0

 
(1.8
)
 
$
(83.3
)
 
$
(97.1
)
 
$
2,160.0

Net loss
 

 

 

 
(26.9
)
 

 

 

 
(26.9
)
Other comprehensive income
 

 

 

 

 

 

 
6.9

 
6.9

Equity awards exercised
 
0.2

 

 
(4.4
)
 

 

 

 

 
(4.4
)
Stock-based compensation
 

 

 
6.1

 

 

 

 

 
6.1

Balance, March 31, 2019
 
58.0

 
$
0.6

 
$
2,137.5

 
$
177.1

 
(1.8
)
 
$
(83.3
)
 
$
(90.2
)
 
$
2,141.7

Net loss
 

 

 

 
(171.8
)
 

 

 

 
(171.8
)
Other comprehensive income
 

 

 

 

 

 

 
7.4

 
7.4

Equity awards exercised
 

 

 
(0.7
)
 

 

 

 

 
(0.7
)
Stock-based compensation
 

 

 
6.7

 

 

 

 

 
6.7

Balance, June 30, 2019
 
58.0

 
$
0.6

 
$
2,143.5

 
$
5.3

 
(1.8
)
 
$
(83.3
)
 
$
(82.8
)
 
$
1,983.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2020
 
58.0

 
$
0.6

 
$
2,154.6

 
$
(157.0
)
 
(1.8
)
 
$
(83.3
)
 
$
(84.0
)
 
$
1,830.9

Net loss
 

 

 

 
(31.2
)
 

 

 

 
(31.2
)
Other comprehensive loss
 

 

 

 

 

 

 
(15.8
)
 
(15.8
)
Equity awards exercised
 
0.2

 

 
(3.9
)
 

 

 

 

 
(3.9
)
Stock-based compensation
 

 

 
8.1

 

 

 

 

 
8.1

Balance, March 31, 2020
 
58.2

 
$
0.6

 
$
2,158.8

 
$
(188.2
)
 
(1.8
)
 
$
(83.3
)
 
$
(99.8
)
 
$
1,788.1

Net loss
 

 

 

 
(1.5
)
 

 

 

 
(1.5
)
Other comprehensive income
 

 

 

 

 

 

 
7.5

 
7.5

Equity awards exercised
 
0.1

 

 
2.5

 

 

 

 

 
2.5

Stock-based compensation
 

 

 
7.1

 

 

 

 

 
7.1

Balance, June 30, 2020
 
58.3

 
$
0.6

 
$
2,168.4

 
$
(189.7
)
 
(1.8
)
 
$
(83.3
)
 
$
(92.3
)
 
$
1,803.7





















See Notes to Condensed Consolidated Financial Statements.

6



TREEHOUSE FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
 
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
Net loss
 
$
(32.7
)
 
$
(198.7
)
Net income (loss) from discontinued operations
 
2.7

 
(134.1
)
Net loss from continuing operations
 
(35.4
)
 
(64.6
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
Depreciation and amortization
 
99.4

 
106.5

Stock-based compensation
 
14.9

 
12.0

Unrealized loss on derivative contracts
 
59.8

 
41.2

Deferred income taxes
 
21.9

 
0.1

Other
 
12.0

 
(0.7
)
Changes in operating assets and liabilities:
 
 
 
 
Receivables
 
4.8

 
49.8

Inventories
 
(84.4
)
 
(79.2
)
Prepaid expenses and other assets
 
(59.7
)
 
(28.7
)
Accounts payable
 
58.1

 
(63.4
)
Accrued expenses and other liabilities
 
31.9

 
(16.5
)
Net cash provided by (used in) operating activities - continuing operations
 
123.3

 
(43.5
)
Net cash provided by operating activities - discontinued operations
 
0.5

 
52.9

Net cash provided by operating activities
 
123.8

 
9.4

Cash flows from investing activities:
 
 
 
 
Additions to property, plant, and equipment
 
(49.0
)
 
(56.7
)
Additions to intangible assets
 
(7.6
)
 
(13.8
)
Proceeds from sale of fixed assets
 
5.1

 
1.4

Proceeds from divestiture
 
26.9

 

Other
 

 
(0.1
)
Net cash used in investing activities - continuing operations
 
(24.6
)
 
(69.2
)
Net cash used in investing activities - discontinued operations
 
(0.4
)
 
(3.5
)
Net cash used in investing activities
 
(25.0
)
 
(72.7
)
Cash flows from financing activities:
 
 
 
 
Borrowings under Revolving Credit Facility
 
100.0

 
46.3

Payments under Revolving Credit Facility
 
(100.0
)
 
(46.3
)
Payments on financing lease obligations
 
(0.7
)
 
(1.3
)
Payments on Term Loans
 
(7.0
)
 
(35.0
)
Receipts related to stock-based award activities
 
2.6

 
0.5

Payments related to stock-based award activities
 
(4.0
)
 
(5.6
)
Net cash used in financing activities - continuing operations
 
(9.1
)
 
(41.4
)
Net cash used in financing activities - discontinued operations
 

 

Net cash used in financing activities
 
(9.1
)
 
(41.4
)
Effect of exchange rate changes on cash and cash equivalents
 
1.9

 
4.1

Net increase (decrease) in cash and cash equivalents
 
91.6

 
(100.6
)
Cash and cash equivalents, beginning of period
 
202.3

 
164.3

Cash and cash equivalents, end of period
 
$
293.9

 
$
63.7

 
 
 
 
 

7



 
 
Six Months Ended
June 30,
 
 
2020
 
2019
Supplemental cash flow disclosures
 
 
 
 
Interest paid
 
$
44.8

 
$
56.8

Net income tax paid (refund)
 
5.2

 
(5.3
)
 
 
 
 
 
Non-cash investing activities:
 
 
 
 
Accrued purchase of property and equipment
 
$
19.4

 
$
26.8

Accrued other intangible assets
 
2.8

 
4.9

Right-of-use assets and operating lease obligations recognized at ASU 2016-02 transition
 

 
252.5

Right-of-use assets and operating lease obligations recognized after ASU 2016-02 transition
 
5.2

 
7.4











































See Notes to Condensed Consolidated Financial Statements.


8

TREEHOUSE FOODS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the six months ended June 30, 2020
(Unaudited)



1. BASIS OF PRESENTATION

The unaudited Condensed Consolidated Financial Statements included herein have been prepared by TreeHouse Foods, Inc. and its consolidated subsidiaries (the "Company," "TreeHouse," "we," "us," or "our"), pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to quarterly reporting on Form 10-Q. In our opinion, these statements include all adjustments necessary for a fair presentation of the results of all interim periods reported herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted as permitted by such rules and regulations. The Condensed Consolidated Financial Statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Results of operations for interim periods are not necessarily indicative of annual results.

The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires us to use our judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates.

A detailed description of the Company’s significant accounting policies can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

Change in Segments

In the first quarter of 2020, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. All prior period information has been recast to reflect this change in reportable segments. Refer to Note 16 for additional information.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Adopted

In March 2020, the SEC amended Rules 3-10 and 3-16 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors and affiliates whose securities are pledged as collateral. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. This rule is effective January 4, 2021 with earlier adoption permitted. The Company early adopted this new rule during the first quarter of 2020.

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company early adopted this guidance during the first quarter of 2020. The adoption did not have a material impact on the Company's financial statements.


9

TREEHOUSE FOODS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Not yet adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include: contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the ASU from March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of this new ASU on its consolidated financial statements and related disclosures.

3. RESTRUCTURING PROGRAMS

The Company’s restructuring and margin improvement activities are part of an enterprise-wide transformation to improve long-term profitability of the Company. These activities are aggregated into two categories: (1) TreeHouse 2020 – a long-term growth and margin improvement strategy and (2) Structure to Win – an operating expenses improvement program (collectively the "Restructuring Programs").
 
The costs by activity for the Restructuring Programs are outlined below:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
 
 
(In millions)
TreeHouse 2020
 
$
8.8

 
$
28.1

 
$
20.9

 
$
54.5

Structure to Win
 
3.0

 
5.5

 
10.8

 
11.1

Total Restructuring Programs
 
$
11.8

 
$
33.6

 
$
31.7

 
$
65.6


 
Expenses associated with these programs are recognized in Cost of sales, General and administrative, and Other operating expense, net in the Condensed Consolidated Statements of Operations.  The Company does not allocate costs associated with Restructuring Programs to reportable segments when evaluating the performance of its segments.  As a result, costs associated with Restructuring Programs are not presented by reportable segment. Refer to Note 16 for more information. 
 
Below is a summary of costs by line item for the Restructuring Programs:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
 
 
(In millions)
Cost of sales
 
$

 
$
0.2

 
$
0.7

 
$
3.2

General and administrative
 
0.3

 
0.8

 
1.0

 
1.6

Other operating expense, net
 
11.5

 
32.6

 
30.0

 
60.8

Total
 
$
11.8

 
$
33.6

 
$
31.7

 
$
65.6


 
The table below presents the exit cost liability activity as of June 30, 2020:  
 
 
Severance
 
 
(In millions)
Balance as of December 31, 2019
 
$
5.6

Expenses recognized
 
2.8

Cash payments
 
(4.2
)
Balance as of June 30, 2020
 
$
4.2


 
Liabilities as of June 30, 2020 associated with total exit cost reserves relate to severance. The severance liability is included in Accrued expenses in the Condensed Consolidated Balance Sheets.
 

10

TREEHOUSE FOODS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(1) TreeHouse 2020
 
In the third quarter of 2017, the Company announced TreeHouse 2020, a program intended to accelerate long-term growth through optimization of our manufacturing network, transformation of our mixing centers and warehouse footprint, and leveraging of systems and processes to drive performance.  The Company’s workstreams related to these activities and selling, general, and administrative cost reductions will increase our capacity utilization, expand operating margins, and streamline our plant structure to optimize our supply chain. This program will be executed through 2020. 

Below is a summary of the overall TreeHouse 2020 program costs by type: 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
Cumulative Costs To Date
 
Total Expected Costs
 
 
2020
 
2019
 
2020
 
2019
 
 
 
 
(In millions)
Asset-related
 
$

 
$

 
$

 
$
2.4

 
$
45.1

 
$
45.5

Employee-related
 
1.0

 
3.2

 
1.7

 
7.3

 
57.8

 
59.5

Other costs
 
7.8

 
24.9

 
19.2

 
44.8

 
177.3

 
196.5

Total
 
$
8.8

 
$
28.1

 
$
20.9

 
$
54.5

 
$
280.2

 
$
301.5