Restructuring

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



	Three Months Ended
	March 31,
	2017		2016
Cost of sales – services and software	$	3.0	$	0.3
Cost of sales – systems	0.6		—
Selling and administrative expense	8.4		0.1
Research, development and engineering expense	0.9		—
Total	$	12.9	$	0.4

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



	Three Months Ended
	March 31,
	2017		2016
Severance
Services	$	4.7	$	—
Software	0.1		0.3
Systems	1.8		0.1
Corporate	6.3		—
Total severance	$	12.9	$	0.4

Multi-Year Transformation Plan

During the first quarter of 2013, the Company announced a multi-year transformation plan, which focused 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 related to the Company's multi-year transformation plan were $0.4 for the three months ended March 31, 2016. The multi-year transformation plan was considered complete as of December 31, 2016.

DN2020 Plan

On February 28, 2017, the Company launched DN2020, which aligns employee activities with the Company's goal of improving operating profit by $200.0 through the year 2020. The DN2020 plan focuses on the utilization of cost efficiencies and synergy opportunities that result from the Acquisition. The Company incurred restructuring charges of $12.9 for the three months ended March 31, 2017 related to DN2020. The Company anticipates additional restructuring costs of approximately $70 to be incurred through the end of DN2020.

Delta Program

At the beginning of the 2015, Diebold Nixdorf AG 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 did not incur restructuring charges during the three months ended March 31, 2017 related to this plan. As of March 31, 2017, the Company does not anticipate additional restructuring costs to be incurred through the end of the plan.

Strategic Alliance Plan

On November 10, 2016, the Company entered into a strategic alliance plan with the Inspur Group, a Chinese cloud computing and data center company, to develop, manufacture and distribute banking solutions in China. In November 2016, the Inspur JV was formed and the Company does not expect a significant gain or loss from the transaction. The Company did not incur restructuring charges during the three months ended March 31, 2017 related to this plan. The Company anticipates additional restructuring costs of approximately $1.0 to be incurred through the end of the plan.

The following table summarizes the Company's cumulative total restructuring costs by plan as of March 31, 2017:



	DN2020 Plan		Delta Program		Strategic Alliance		Total

Services	$	26.1	$	0.1	$	2.0	$	28.2
Software	5.3		1.8		0.1		7.2
Systems	15.9		—		3.6		19.5
Corporate	8.4		1.3		—		9.7
Total	$	55.7	$	3.2	$	5.7	$	64.6

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



	2017			2016
Balance at January 1	$	89.9		$	4.7
Liabilities incurred	12.9			0.4
Liabilities paid/settled	(27.2		)	(1.3		)
Balance at March 31	$	75.6		$	3.8