Restructuring

The Company recorded pre-tax restructuring charges of $14.7 million in the second quarter of 2012, including $13.8 million associated with repositioning actions designed to improve profitability largely beginning in 2013, primarily in the European portion of the Fluid Handling segment and a 0.9 million, net charge, related to the completion of previous restructuring actions. Related to these actions, in the third quarter of 2012, the Company recorded $0.2 million of additional restructuring charges as well as $1.2 million related to the write-down of inventory resulting from the closure of product lines which is included in cost of sales.

The restructuring charges associated with the repositioning actions included severance and other costs related to the planned closure of two small European plants, the transfer of certain manufacturing operations from higher cost to lower cost Company facilities and other staff reduction actions. The following table summarizes the accrual balances related to the restructuring charges:



(in millions)	June 30, 2012		Expense		Utilization			September 30, 2012
Severance	$	11.6	$	—	$	(2.5	)	$	9.1
Other	0.1		0.2		(0.1		)	0.2
	$	11.7	$	0.2	$	(2.6	)	$	9.3

The Company expects the 2012 actions to result in workforce reductions of approximately 200 employees, or about 2% of the Company’s global workforce. The Company expects to incur additional restructuring and related charges of approximately $4 million during the fourth quarter of 2012 to complete these actions. The Company expects pre-tax cash payments of approximately $5 million in 2012 and an additional $10 million in 2013 pertaining to the restructuring charges, which the Company will fund with cash generated from operations.