Restructuring Charges

9 Months Ended

Sep. 30, 2012

RESTRUCTURING CHARGES

During the fourth quarter 2011, the Company committed to restructuring plans (the "2011 Plan") to expand our operating margins and improve our earnings through substantial cost and capacity reductions, primarily within our North America and EMEA operating segments.

The 2011 Plan includes the following actions:


•	Overall workforce reduction of more than 5,000 positions, including approximately 1,200 salaried positions.


•	Closure of a refrigeration manufacturing facility in the United States in 2012.


•	Cease laundry production in a European manufacturing facility by 2013.


•	Ceased dishwasher production in a European manufacturing facility in January 2012.


•	Additional organizational efficiency actions in North America and EMEA.

Combined within the 2011 Plan are previously announced restructuring initiatives and the financial restructuring related to matters disclosed in Note 3. We expect to incur approximately $500 million of total costs related to the combined plans with completion expected by the end of 2013. The following table summarizes the change in our restructuring liability, cumulative charges recognized and total expected charges for the combined plans for the nine months ended September 30, 2012.



Millions of dollars	12/31/2011		Charge to Earnings		Cash Paid			Non-cash and Other			Revision of Estimate			9/30/2012		Cumulative Charges ¹		Expected Total Charges
Employee termination costs	$	62	$	60	$	(64	)	$	—		$	—		$	58	$	117	$	270
Asset impairment costs	—		65		—			(65		)	—			—		77		95
Facility exit costs	9		23		(18		)	(7		)	(1		)	6		31		85
Other exit costs	7		27		(24		)	—			—			10		28		50
Total	$	78	$	175	$	(106	)	$	(72	)	$	(1	)	$	74	$	253	$	500

The following table summarizes restructuring charges for the combined plans, by operating segment, as of September 30, 2012.



Millions of dollars	2012 Charges		Cumulative Charges ¹		Expected Total Charges
North America	$	111	$	164	$	331
Latin America	—		2		6
EMEA	58		79		151
Asia	5		6		8
Corporate / Other	1		2		4
Total	$	175	$	253	$	500

¹Cumulative charges exclude $22 million of employee termination costs and $17 million of facility and other exit costs related to previous restructuring plans that were transferred into the 2011 plan during 2011.

- 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.

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