Restructuring Costs (Notes)

3 Months Ended

Mar. 31, 2020

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 months ended March 31:

	Three months ended
In millions	2020		2019
Americas	$	20.8	$	3.4
EMEA	0.6		0.5
Asia Pacific	1.1		1.3
Corporate and Other	3.1		0.9
Total	$	25.6	$	6.1
Cost of goods sold	$	10.3	$	3.4
Selling and administrative expenses	15.3		2.7
Total	$	25.6	$	6.1

The changes in the restructuring reserve for the three months ended March 31, 2020 were as follows:

In millions	Americas			EMEA			Asia Pacific			Corporate and Other			Total
December 31, 2019	$	11.9		$	2.8		$	9.1		$	1.6		$	25.4
Additions, net of reversals (1)	16.8			0.6			1.1			3.1			21.6
Cash paid/other	(11.9		)	(1.2		)	(9.1		)	(1.4		)	(23.6		)
March 31, 2020	$	16.8		$	2.2		$	1.1		$	3.3		$	23.4

⁽¹⁾ Excludes the non-cash costs of asset rationalizations ($4.0 million).

During the three months ended March 31, 2020, costs associated with announced restructuring actions primarily included the following:

• costs related to the reorganization of resources and facilities in response to the completion of the Transaction and separation of Ingersoll Rand Industrial; and

• the plan to close two U.S. manufacturing facilities within the Americas and relocate production to another existing U.S. facility 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 March 31, 2020, the Company had $23.4 million accrued for costs associated with its ongoing restructuring actions, of which a majority is expected to be paid within one year.