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				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Cost of sales – services	$	0.7	$	1.6	$	2.4	$	2.7
Cost of sales – products	1.6		0.1		1.6		1.4
Selling and administrative expense	5.0		5.9		8.6		13.1
Research, development and engineering expense	0.1		—		0.2		0.6
Total	$	7.4	$	7.6	$	12.8	$	17.8

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Severance
NA ⁽¹⁾	$	2.4	$	4.7	$	4.3	$	9.3
AP	—		0.7		—		0.9
EMEA	3.5		—		4.1		3.0
LA	1.5		2.2		4.4		4.6
Total severance	$	7.4	$	7.6	$	12.8	$	17.8

⁽¹⁾ NA includes corporate and global restructuring costs.

Multi-Year Transformation Plan

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 $4.3 and $7.6 for the three months ended September 30, 2016 and 2015, respectively, and $9.7 and $17.8 for the nine months ended September 30, 2016 and 2015, respectively, related to the Company's multi-year transformation plan. As of September 30, 2016, the restructuring accrual balance consists of severance restructuring activities in connection with the multi-year transformation plan. As of September 30, 2016, the Company anticipates minimal additional restructuring costs to be incurred through the end of 2016 in connection with the multi-year transformation plan. As management finalizes certain aspects of the transformation plan, the anticipated future costs related to this plan are subject to change.

Delta Program

At the beginning of the 2015, Wincor Nixdorf initiated the Delta Program related to restructuring and realignment. As part of a change process that will span several years, the Delta Program is designed to hasten the expansion of software and professional services operations and to further enhance profitability in the services business. This program includes expansion in the high-end fields of as managed services and outsourcing. It also involves capacity adjustments on the hardware side, enabling the Company to respond more effectively to market volatility while maintaining its abilities with innovation. As of August 15, 2016, the date of the Acquisition, the restructuring accrual balance acquired was $45.5 and consisted of severance activities. The Company incurred restructuring charges of $3.1for the three and nine months ended September 30, 2016 related to this plan. As of September 30, 2016, the Company does not anticipate additional restructuring costs to be incurred through the end of the plan.

The following table summarizes the Company's cumulative total restructuring costs for the multi-year transformation plan as of September 30, 2016:



	Severance		Other		Total
Cumulative total restructuring costs for the multi-year transformation plan
NA ⁽¹⁾	$	72.2	$	2.0	$	74.2
AP	3.8		0.6		4.4
EMEA	6.7		0.9		7.6
LA	24.3		—		24.3
Total	$	107.0	$	3.5	$	110.5

⁽¹⁾ NA includes corporate and global restructuring costs.

The following table summarizes the Company's cumulative total restructuring costs for the Delta Program as of September 30, 2016:



	Severance		Other		Total
Cumulative total restructuring costs for the Delta Program
NA	$	—	$	—	$	—
AP	—		—		—
EMEA	3.0		—		3.0
LA	0.1		—		0.1
Total	$	3.1	$	—	$	3.1

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



	2016			2015
Balance at January 1	$	4.7		$	7.6
Liabilities incurred	12.8			17.8
Liabilities acquired	45.5			—
Liabilities paid/settled	(11.7		)	(19.8		)
Balance at September 30	$	51.3		$	5.6

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. On April 29, 2015, the Company closed the sale for the estimated fair market value and recorded a $1.0 reversal of impairment of assets based on final adjustments in the second quarter of 2015, resulting in a $9.3 impairment of assets for the nine months ended September 30, 2015 (refer to note 20).

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 $127.2 and $159.5 impacted the three and nine months ended September 30, 2016, respectively, and $4.3 and $14.3 impacted the three and nine months ended September 30, 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 and nine months ended September 30, 2016 included acquisition, divestiture and integration related fees and expenses of $75.1 and $100.6, respectively, within selling and administrative expense.