Restructuring

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



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2017			2016		2017			2016
Cost of sales – services and software	$	12.6		$	1.4	$	15.6		$	1.7
Cost of sales – systems	1.0			—		1.6			—
Selling and administrative expense	2.4			3.5		10.8			3.6
Research, development and engineering expense	(1.6		)	0.1		(0.7		)	0.1
Total	$	14.4		$	5.0	$	27.3		$	5.4

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



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2017			2016		2017			2016
Severance
Services	$	14.2		$	2.3	$	18.9		$	2.3
Software	0.5			0.2		(0.2		)	0.5
Systems	0.9			0.8		3.5			0.9
Corporate	(1.2		)	1.7		5.1			1.7
Total severance	$	14.4		$	5.0	$	27.3		$	5.4

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 $5.0 and $5.4 for the three and six months ended June 30, 2016, respectively. The multi-year transformation plan was considered complete as of December 31, 2016.

DN2020 Plan

As of August 15, 2016, the date of the Acquisition, the Company launched a multi-year integration and transformation program, known as DN2020. The DN2020 plan focuses on the utilization of cost efficiencies and synergy opportunities that result from the Acquisition, which aligns employee activities with the Company's goal of delivering net operating profit savings of approximately $240 by the year 2020. The Company incurred restructuring charges of $14.4 and $27.3 for the three and six months ended June 30, 2017 related to DN2020. The Company anticipates additional restructuring costs of approximately $75 primarily related to severance anticipated for completion of the Company's integration and transformation plans throughout the three lines of business 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 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 and six months ended June 30, 2017 related to this plan. As of June 30, 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. The Company did not incur restructuring charges during the three and six months ended June 30, 2017 related to this plan. The Company anticipates additional restructuring costs primarily related to severance 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 June 30, 2017:



	DN2020 Plan		Delta Program		Strategic Alliance		Total

Services	$	40.3	$	0.1	$	2.0	$	42.4
Software	5.8		1.8		0.1		7.7
Systems	16.8		—		3.6		20.4
Corporate	7.2		1.3		—		8.5
Total	$	70.1	$	3.2	$	5.7	$	79.0

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



	2017			2016
Balance at January 1	$	89.9		$	4.7
Liabilities incurred	27.3			5.4
Liabilities paid/settled	(37.7		)	(4.8		)
Balance at June 30	$	79.5		$	5.3