Restructuring and Other Charges

Restructuring Charges

The following table summarizes the impact of the Company’s restructuring charges on the condensed consolidated statements of income:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Cost of sales – services	$	1.2	$	0.1	$	1.2	$	0.8
Cost of sales – products	1.3		0.1		1.3		0.1
Selling and administrative expense	4.7		0.5		7.2		4.9
Research, development and engineering expense	—		—		0.6		—
Total	$	7.2	$	0.7	$	10.3	$	5.8

The following table summarizes the Company’s restructuring charges by reporting segment:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Severance
North America (NA)	$	3.2	$	0.6	$	4.7	$	2.7
Asia Pacific (AP)	0.2		—		0.2		0.3
Europe, Middle East and Africa (EMEA)	2.1		0.1		3.0		0.7
Latin America (LA)	1.7		—		2.4		2.1
Total severance	$	7.2	$	0.7	$	10.3	$	5.8

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 $7.2 and $0.7 for the three months ended June 30, 2015 and 2014, respectively, and $10.3 and $5.8 for the six months ended June 30, 2015 and 2014, respectively, related to the Company's multi-year transformation plan. Restructuring charges for the six months ended June 30, 2015 consisted primarily of severance costs related to the Company's transformation and business process outsourcing initiative. As of June 30, 2015, the Company anticipates additional restructuring costs of $6.4 to $8.5 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 (refer to note 1). The Company anticipates additional cost in the multi-year transformation plan through at least the end of 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 June 30, 2015:



	Severance		Other		Total
Cumulative total restructuring costs for the multi-year transformation plan
NA	$	66.6	$	2.0	$	68.6
AP	2.8		0.6		3.4
EMEA	4.7		0.9		5.6
LA	16.8		—		16.8
Total	$	90.9	$	3.5	$	94.4

The following table summarizes the Company’s restructuring accrual balances and related activity for the six months ended June 30:



	2015			2014
Balance at January 1	$	7.8		$	35.3
Liabilities incurred	10.3			5.8
Liabilities paid/settled	(10.4		)	(33.1		)
Balance at June 30	$	7.7		$	8.0

Impairment and Other Charges

The Company recorded an impairment related to other intangibles in LA in the second quarter of 2015 and an impairment of $9.1 related to redundant legacy Diebold internally-developed 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 (expense) income of $(5.4) and $12.2 impacted the three months ended June 30, 2015 and 2014, respectively. Net non-routine (expense) income of $(10.0) and $11.1 impacted the six months ended June 30, 2015 and 2014, respectively. Non-routine expense for the six months ended June 30, 2015 is primarily due to legal, indemnification and professional fees related to the corporate monitor. Non-routine income for the first six months of 2014 included a $13.7 pre-tax gain from the sale of the Eras, recognized in gain on sale of assets, net in the condensed consolidated statements of income.