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				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Cost of sales – services	$	1.6	$	0.6	$	2.8	$	1.4
Cost of sales – products	0.1		—		1.4		0.1
Selling and administrative expense	5.9		0.4		13.1		5.3
Research, development and engineering expense	—		—		0.6		—
Total	$	7.6	$	1.0	$	17.9	$	6.8

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Severance
North America (NA) (1)	$	4.7	$	1.0	$	9.4	$	3.7
Asia Pacific (AP)	0.7		—		0.9		0.3
Europe, Middle East and Africa (EMEA)	—		—		3.0		0.7
Latin America (LA)	2.2		—		4.6		2.1
Total severance	$	7.6	$	1.0	$	17.9	$	6.8

(1) NA includes corporate and global restructuring costs

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 $7.6 and $1.0 for the three months ended September 30, 2015 and 2014, respectively, and $17.9 and $6.8 for the nine months ended September 30, 2015 and 2014, respectively, related to the Company's multi-year transformation plan. Restructuring charges for the nine months ended September 30, 2015 consisted primarily of severance costs related to the Company's transformation, business process outsourcing initiative, and executive delayering. As of September 30, 2015, the Company anticipates additional restructuring costs of $3.0 to $4.1 to be incurred through the end of 2015, primarily within LA. 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 September 30, 2015:



	Severance		Other		Total
Cumulative total restructuring costs for the multi-year transformation plan
NA (1)	$	71.2	$	2.0	$	73.2
AP	3.6		0.6		4.2
EMEA	4.7		0.9		5.6
LA	19.0		—		19.0
Total	$	98.5	$	3.5	$	102.0

(1) NA includes corporate and global restructuring costs

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



	2015			2014
Balance at January 1	$	7.8		$	35.3
Liabilities incurred	17.9			6.8
Liabilities paid/settled	(20.1		)	(35.9		)
Balance at September 30	$	5.6		$	6.2

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 $(4.4) and $(3.6) impacted the three months ended September 30, 2015 and 2014, respectively. Net non-routine (expense) income of $(14.4) and $7.5 impacted the nine months ended September 30, 2015 and 2014, respectively. Non-routine expense for the nine months ended September 30, 2015 is primarily due to legal, indemnification and professional fees related to corporate monitor efforts. Additionally, potential acquisition and divestiture related costs of $2.6 were incurred in the third quarter of 2015 included within selling and administrative expense. Non-routine income for the first nine months of 2014 included a $13.7 pre-tax gain from the sale of Eras, recognized in gain on sale of assets, net in the condensed consolidated statements of income offset by legal, indemnification and professional fees related to corporate monitor efforts.