Restructuring and Other Charges

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

Restructuring Charges

The following table summarizes the impact of the Company’s restructuring charges on the condensed consolidated statements of operations for the three months ended March 31:



	2015		2014
Cost of sales – services	$	—	$	0.7
Selling and administrative expense	2.5		4.4
Research, development and engineering expense	0.6		—
Total	$	3.1	$	5.1

The following table summarizes the Company’s restructuring charges by reporting segment for the three months ended March 31:



	2015		2014
Severance
North America (NA)	$	1.5	$	2.1
Asia Pacific (AP)	—		0.3
Europe, Middle East and Africa (EMEA)	0.9		0.6
Latin America (LA)	0.7		2.1
Total Severance	$	3.1	$	5.1

During the first quarter of 2013, the Company announced a multi-year transformation plan. Certain aspects of this plan were previously disclosed under the Company's global realignment plan and global shared services plan. This multi-year transformation focuses on globalizing the Company's service organization and creating a unified center-led global organization for research and development, as well as transforming the Company's general and administrative cost structure. Restructuring charges of $3.1 and $5.1 for the three months ended March 31, 2015 and 2014, respectively, related to the Company's multi-year transformation plan. Restructuring charges for the three months ended March 31, 2015 primarily related to a business process outsourcing initiative. As of March 31, 2015, the Company anticipates additional restructuring costs of $2.2 to $4.3 to be incurred through the end of 2015, primarily within NA and EMEA, along with the realignment of LA and Brazil which was announced in January 2015. Further details of the alignment appear in note 1 in the notes to the condensed consolidated financial statements. The Company anticipates additional cost in the multi-year transformation plan through at least 2015. As management finalizes certain aspects of the transformation plan, the anticipated future costs related to this plan are subject to change.

The following table summarizes the Company's cumulative total restructuring costs for the multi-year transformation plan as of March 31, 2015:



	Severance		Other		Total
Cumulative total restructuring costs for the multi-year transformation plan
NA	$	63.3	$	2.0	$	65.3
AP	2.7		0.6		3.3
EMEA	2.7		0.9		3.6
LA	15.1		—		15.1
Total	$	83.8	$	3.5	$	87.3

The following table summarizes the Company’s restructuring accrual balances and related activity for the three months ended March 31:



	2015			2014
Balance at January 1	$	7.8		$	35.3
Liabilities incurred	3.1			5.1
Liabilities paid/settled	(5.4		)	(23.4		)
Balance at March 31	$	5.5		$	17.0

Impairment and Other Charges

During the first quarter of 2015, the Company recorded an impairment of capitalized software of $9.1 related to redundant legacy Diebold software as a result of the acquisition of Phoenix.

Other charges consist of items that the Company has determined are non-routine in nature and are not expected to recur in future operations. Net non-routine expenses of $4.6 and $1.1 impacted the three months ended March 31, 2015 and 2014, respectively.

- 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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