Restructuring Costs (Notes)

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Activities

The Company incurs costs associated with announced restructuring initiatives intended to result in improved operating performance, profitability and working capital levels. Actions associated with these initiatives may include workforce reduction, improving manufacturing productivity, realignment of management structures and rationalizing certain assets. The following table details restructuring charges recorded during the three and nine months ended September 30:

	Three months ended				Nine months ended
In millions	2019		2018		2019		2018
Climate	$	16.6	$	14.9	$	35.2	$	23.0
Industrial	7.9		4.8		32.0		42.0
Corporate and Other	—		0.4		0.8		6.6
Total	$	24.5	$	20.1	$	68.0	$	71.6
Cost of goods sold	$	21.5	$	15.8	$	57.8	$	54.8
Selling and administrative expenses	3.0		4.3		10.2		16.8
Total	$	24.5	$	20.1	$	68.0	$	71.6

The changes in the restructuring reserve for the nine months ended September 30, 2019 were as follows:

In millions	Climate			Industrial			Corporate and Other			Total
December 31, 2018	$	18.9		$	29.9		$	2.6		$	51.4
Additions, net of reversals (1)	32.5			15.7			0.8			49.0
Cash paid/other	(32.8		)	(28.3		)	(2.2		)	(63.3		)
September 30, 2019	$	18.6		$	17.3		$	1.2		$	37.1

(1) Excludes the non-cash costs of asset rationalizations ($19.0 million).

Current restructuring actions include general workforce reductions as well as the closure and consolidation of certain manufacturing facilities in an effort to improve the Company's cost structure. During the nine months ended September 30, 2019, costs associated with announced restructuring actions primarily included the following:

• the plan to close a U.S. manufacturing facility within the Industrial segment and relocate production to other U.S. and Non-U.S. facilities announced in 2019; and

• the plan to close two U.S. manufacturing facilities within the Climate segment and relocate production to another existing U.S. facility announced in 2018; and

• the plan to close a Non-U.S. manufacturing facility within the Industrial segment and relocate to other U.S. and Non-U.S. facilities announced in 2018.

Amounts recognized primarily relate to severance and exit costs. In addition, the Company also includes costs that are directly attributable to the restructuring activity but do not fall into the severance, exit or disposal categories. As of September 30, 2019, the Company had $37.1 million accrued for costs associated with its ongoing restructuring actions, of which a majority is expected to be paid within one year. These actions primarily relate to workforce reduction benefits.