XML 29 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Restructuring
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES 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,
 
 
2019
 
2018
 
2019
 
2018
Cost of sales – services
 
$
2.6

 
$
(0.3
)
 
$
4.1

 
$
1.7

Cost of sales – products
 
—

 
(0.5
)
 
—

 
0.1

Selling and administrative expense
 
4.8

 
3.1

 
7.0

 
4.4

Research, development and engineering expense
 
(0.1
)
 
(0.1
)
 
—

 
(0.1
)
Loss on sale of assets, net
 
0.1

 
—

 
0.1

 
—

Total
 
$
7.4

 
$
2.2

 
$
11.2

 
$
6.1



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,
 
 
2019
 
2018
 
2019
 
2018
Severance
 
 
 
 
 
 
 
 
Eurasia Banking
 
$
1.3

 
$
1.2

 
$
2.8

 
$
3.7

Americas Banking
 
0.2

 
0.2

 
0.6

 
0.3

Retail
 
2.8

 
0.3

 
3.6

 
0.8

Corporate
 
3.0

 
0.5

 
4.1

 
1.3

Total severance
 
$
7.3

 
$
2.2

 
$
11.1

 
$
6.1

 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
Americas Banking
 
0.1

 
—

 
0.1

 
—

Total Other
 
0.1

 
—

 
0.1

 
—

Total
 
$
7.4

 
$
2.2

 
$
11.2

 
$
6.1


DN Now

During the second quarter of 2018, the Company began implementing DN Now to deliver greater, more sustainable profitability. The gross annualized savings target for DN Now is approximately $400 through 2021, of which approximately $175 is anticipated to be realized during 2019. In order to achieve these savings, the Company has and will continue to restructure the workforce, integrate and optimize systems and processes, transition workloads to lower cost locations and consolidate real estate holdings. Additional near-term activities include continuation of the services modernization plan, rationalizing of the Company's product portfolio and further reducing the Company's selling and administrative expense. The Company incurred restructuring charges of $7.4 and $11.2 for the three and six months ended June 30, 2019, respectively, related to DN Now. The Company anticipates additional restructuring costs of approximately $125 to $175 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.

Completed Plans

DN2020 Plan. As of August 15, 2016, the date of the acquisition of Wincor Nixdorf Aktiengesellschaft (now known as Diebold Nixdorf AG) (the Acquisition), the Company launched a multi-year integration and transformation program, known as DN2020. The Company incurred restructuring charges of $2.2 and $6.0 for the three and six months ended June 30, 2018 related to this plan, respectively.

Strategic Alliance Plan. On November 10, 2016, the Company entered into a strategic alliance with the Inspur Group, a Chinese cloud computing and data center company, to develop, manufacture and distribute Systems solutions in China. The Company incurred $0.1 restructuring charges during the six months ended June 30, 2018 related to this plan.

The following table summarizes the Company's cumulative total restructuring costs by plan as of June 30, 2019:
 
DN Now
 
DN2020 Plan
 
Strategic Alliance
 
 
 
Severance
 
Other
 
Severance
 
Severance
 
Total
Eurasia Banking
$
36.1

 
$
—

 
$
51.5

 
$
8.2

 
$
95.8

Americas Banking
9.2

 
0.1

 
13.6

 
—

 
22.9

Retail
16.1

 
—

 
15.6

 
—

 
31.7

Corporate
8.6

 
—

 
15.1

 
—

 
23.7

Total
$
70.0

 
$
0.1

 
$
95.8

 
$
8.2

 
$
174.1



The following table summarizes the Company’s restructuring accrual balances and related activity for the six months ended June 30:
 
 
2019
 
2018
Balance at January 1
 
$
56.9

 
$
54.0

Liabilities incurred
 
11.2

 
6.1

Liabilities paid/settled
 
(34.6
)
 
(23.2
)
Balance at June 30
 
$
33.5

 
$
36.9