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,
	2018			2017			2018			2017
Cost of sales – services and software	$	(0.3	)	$	12.6		$	1.7		$	15.6
Cost of sales – products	(0.5		)	1.0			0.1			1.6
Selling and administrative expense	3.1			2.4			4.4			10.8
Research, development and engineering expense	(0.1		)	(1.6		)	(0.1		)	(0.7		)
Total	$	2.2		$	14.4		$	6.1		$	27.3

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,
	2018		2017			2018		2017
Severance
Eurasia Banking	$	1.2	$	3.1		$	3.7	$	9.1
Americas Banking	0.2		4.0			0.3		3.4
Retail	0.3		8.5			0.8		9.7
Corporate	0.5		(1.2		)	1.3		5.1
Total severance	$	2.2	$	14.4		$	6.1	$	27.3

DN Now

During the second quarter of 2018, The Company began implementing DN Now to deliver greater, more sustainable profitability. The plan is anticipating savings of approximately $100 from the new customer centric operating model with clear role charters and a global workforce aligned with market demand. Additional near term activities include divesting of non-core businesses, improving service delivery and investing in solutions. The Company anticipates additional restructuring costs of approximately $130 to $150 through the end of the plan primarily related to severance anticipated for completion of the Company's transformation throughout the three solution segments and corporate.

DN2020 Plan

During 2016, the Company launched a multi-year integration and transformation program, known as DN2020. The DN2020 plan focused on the utilization of cost efficiencies and synergy opportunities that result from the transformational acquisition of Wincor Nixdorf AG (Diebold Nixdorf AG), which aligned employee activities with the Company's goal of delivering cost reductions of approximately $240 by the year 2020. The Company incurred restructuring charges of $2.2 and $14.4 for the three months ended June 30, 2018 and 2017, respectively, and $6.0 and $27.3 for the six months ended June 30, 2018 and 2017, respectively, related to DN2020. As of June 30, 2018, the Company has suspended this plan and does not anticipate additional DN2020 restructuring costs.

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 has spanned 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. There were no charges during the periods presented. As of the date of the acquisition of Diebold Nixdorf AG, the restructuring accrual balance acquired was $45.5 and consisted of severance activities. During the third quarter of 2017, the Company recorded a measurement period adjustment of $8.2 to the acquired restructuring accrual resulting in a final fair value of $37.3. As of June 30, 2018, the Company concluded this plan and no additional restructuring costs will be incurred.

Strategic Alliance Plan

During 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 incurred $0.1 restructuring charges during the six months ended June 30, 2018 related to this plan. There were no charges during 2017. The Company anticipates minimal additional restructuring costs 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, 2018:



	DN2020 Plan		Delta Program		Strategic Alliance		Total

Eurasia Banking	$	51.5	$	0.5	$	8.2	$	60.2
Americas Banking	13.6		0.2		—		13.8
Retail	15.6		0.7		—		16.3
Corporate	15.1		1.8		—		16.9
Total	$	95.8	$	3.2	$	8.2	$	107.2

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



	2018			2017
Balance at January 1	$	54.0		$	89.9
Liabilities incurred	6.1			27.3
Liabilities paid/settled	(23.2		)	(37.7		)
Balance at June 30	$	36.9		$	79.5