Restructuring Charges

In 2018, we recorded restructuring charges of $7.2 million related to the acquisition of Crane Currency and the 2017 repositioning actions described below.

Acquisition-Related Restructuring

In 2018, we recorded pre-tax restructuring charges of $1.6 million, all of which were severance-related cash costs associated with the January 2018 acquisition of Crane Currency in our Payment & Merchandising Technologies segment. These actions are related to the closure of Crane Currency’s printing operations in Sweden, which will be transitioned to a new print facility in Malta. We expect these actions to result in workforce reductions of approximately 170 employees, or less than 2% of our global workforce. There was no liability remaining associated with these actions as of December 31, 2018

We expect to incur additional restructuring and related charges of $3.8 million in 2019 to complete these actions. We expect recurring pre-tax savings subsequent to initiating all actions to approximate $23 million annually.

2017 Repositioning

During the fourth quarter of 2017, we initiated broad-based repositioning actions designed to improve profitability. These actions include headcount reductions of approximately 300 employees, or about 3% of our global workforce, and select facility consolidations in North America and Europe.

Restructuring charges included severance and other costs related to the consolidation of certain manufacturing operations, all of which are cash costs. The following table summarizes the restructuring charges by business segment in 2018 and cumulatively through December 31, 2018:



	Severance				Other						Total
(in millions)	2018		Cumulative		2018			Cumulative			2018			Cumulative
Fluid Handling	$	6.1	$	16.7	$	—		$	—		$	6.1		$	16.7
Payment & Merchandising Technologies	0.1		12.3		0.4			0.4			0.5			12.7
Aerospace & Electronics	—		1.3		(1.0		)	(1.0		)	(1.0		)	0.3
	$	6.2	$	30.3	$	(0.6	)	$	(0.6	)	$	5.6		$	29.7

Related to the 2017 repositioning actions, we recorded $7.5 million of additional costs associated with facility consolidations in 2018.

To complete these actions, we expect to incur a total of $11.5 million of restructuring and facility consolidation related charges in 2019 and 2020 in each of the segments as follows:



(in millions)	2019		2020		Total
Fluid Handling	$	5.6	$	1.6	$	7.2
Payment & Merchandising Technologies	1.3		—		1.3
Aerospace & Electronics	3.0		—		3.0
	$	9.9	$	1.6	$	11.5

The following table summarizes the expected costs by nature of costs and year:



(in millions)	2019		2020		Total
Restructuring	$	2.1	$	—	$	2.1
Facility consolidation	7.8		1.6		9.4
	$	9.9	$	1.6	$	11.5

We expect recurring pre-tax savings subsequent to initiating all actions to approximate $30 million annually.

The following table summarizes the accrual balances related to these restructuring charges:



(in millions)	Balance at December 31, 2017		Expense (Gain) ^*			Utilization			Balance at December 31, 2018
Fluid Handling
Severance	$	10.6	$	6.1		$	(3.8	)	$	12.9
Other	—		—			—			—
Total Fluid Handling	$	10.6	$	6.1		$	(3.8	)	$	12.9

Payment & Merchandising Technologies
Severance	$	12.2	$	0.1		$	(2.9	)	$	9.4
Other	—		0.4			(0.4		)	—
Total Payment & Merchandising Technologies	$	12.2	$	0.5		$	(3.3	)	$	9.4

Aerospace & Electronics
Severance	$	1.3	$	—		$	(0.4	)	$	0.9
Other	—		(1.0		)	1.0			—
Total Aerospace & Electronics	$	1.3	$	(1.0	)	$	0.6		$	0.9
Total Restructuring	$	24.1	$	5.6		$	(6.5	)	$	23.2

* Reflected in the Consolidated Statements of Operations as “Restructuring charges”