Restructuring Charges

3 Months Ended

Mar. 31, 2014

Restructuring Charges:

We record restructuring charges associated with management-approved restructuring plans when we reorganize or remove duplicative headcount and infrastructure within our businesses. Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related activities. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. Restructuring charges are not included in our calculation of segment profit (loss), as more fully explained in Note 15.

Restructuring Activities in 2014

There were several ongoing restructuring activities as of March 31, 2014, however, none were individually significant and there were no significant restructuring charges incurred in the first quarter of 2014.

Total Restructuring

Information regarding the restructuring charges for all ongoing activities are presented in the table below (in millions):



	Charges Incurred in 2014		Charges Incurred to Date		Total Charges Expected to be Incurred
Severance and related expense	$	—	$	6.5	$	6.5
Asset write-offs and accelerated depreciation	—		1.5		1.5
Equipment moves	—		—		—
Lease termination	—		—		—
Other	0.1		1.7		1.9
Total restructuring charges	$	0.1	$	9.7	$	9.9

While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions):



	Charges Incurred in 2014		Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	—	$	1.3	$	1.3
Commercial Heating & Cooling	—		0.9		0.9
Refrigeration	0.1		7.5		7.7
Corporate & Other	—		—		—
Total restructuring charges	$	0.1	$	9.7	$	9.9

Restructuring reserves are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details the activity in 2014 within the restructuring reserves (in millions):



	Balance as of December 31, 2013		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of March 31, 2014
Severance and related expense	$	1.6	$	—	$	(0.1	)	$	(0.1	)	$	1.4
Asset write-offs and accelerated depreciation	—		—		—			—			—
Equipment moves	—		—		—			—			—
Lease termination	—		—		—			—			—
Other	—		0.1		(0.1		)	—			—
Total restructuring reserves	$	1.6	$	0.1	$	(0.2	)	$	(0.1	)	$	1.4

- 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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