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:



	Three Months Ended
	March 31,
	2016		2015
Cost of sales – services	$	0.3	$	—
Selling and administrative expense	0.1		2.5
Research, development and engineering expense	—		0.6
Total	$	0.4	$	3.1

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



	Three Months Ended
	March 31,
	2016		2015
Severance
NA ⁽¹⁾	$	—	$	1.5
AP	—		—
EMEA	0.1		0.9
LA	0.3		0.7
Total severance	$	0.4	$	3.1

⁽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 $0.4 and $3.1 for the three months ended March 31, 2016 and 2015, respectively, related to the Company's multi-year transformation plan. Restructuring charges for the three months ended March 31, 2015 consisted primarily of severance costs related to the Company's business process outsourcing initiative. As of March 31, 2016, the restructuring accrual balance consists primarily of severance restructuring activities in connection with the multi-year transformation plan. As of March 31, 2016, the Company anticipates additional restructuring costs in NA, AP and LA of approximately $7.0 to $10.0 to be incurred through the end of 2016. 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, 2016:



	Severance		Other		Total
Cumulative total restructuring costs for the multi-year transformation plan
NA ⁽¹⁾	$	67.9	$	2.0	$	69.9
AP	3.8		0.6		4.4
EMEA	5.7		0.9		6.6
LA	20.3		—		20.3
Total	$	97.7	$	3.5	$	101.2

⁽¹⁾ NA includes corporate and global restructuring costs.

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



	2016			2015
Balance at January 1	$	4.7		$	7.6
Liabilities incurred	0.4			3.1
Liabilities paid/settled	(1.3		)	(5.2		)
Balance at March 31	$	3.8		$	5.5

Impairment and Other Charges

During the first quarter of 2015, the Company recorded an impairment of certain capitalized software of $9.1 related to redundant legacy Diebold software as a result of the acquisition of Phoenix. In addition, the Company agreed to sell its equity interest in its Venezuela joint venture to its joint venture partner and recorded a $10.3 impairment of assets in the first quarter of 2015 (refer to note 19).

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 of $14.1 and $4.6 impacted the three months ended March 31, 2016 and 2015, respectively. Net non-routine expense was partially due to legal, indemnification and professional fees related to corporate monitor efforts. Additionally, net non-routine expense for the three months ended March 31, 2016 included potential acquisition and divestiture related costs of $11.0 within selling and administrative expense.