Restructuring Activities

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities Disclosure

8. Restructuring Activities

The following table details restructuring charges incurred by segment for the periods presented:



	Three Months Ended March 31,
	2014		2013
Energy	$	71	$	—
Engineered Systems	1,920		(324		)
Fluids	905		210
Refrigeration & Food Equipment	—		2,152
Corporate	509		—
Total	$	3,405	$	2,038

These amounts are classified in the unaudited Condensed Consolidated Statements of Comprehensive Earnings as follows:

Cost of goods and services	$	852	$	1,810
Selling and administrative expenses	2,553		228
Total	$	3,405	$	2,038

The restructuring expenses of $3,405 incurred in the three months ended March 31, 2014 related to restructuring programs initiated in the first quarter of 2014 and during 2013. These programs are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. The Company expects full-year 2014 restructuring expenses of approximately $10.0 million to $15.0 million related to these programs. We expect the programs currently underway to be substantially completed in the next twelve to eighteen months.

The $3,405 of restructuring charges incurred during the first quarter of 2014 included the following items.


•	The Energy segment incurred restructuring charges of $71 related principally to a facility consolidation in its businesses serving the compression businesses.


•	The Engineered Systems segment recorded $1,920 of restructuring charges relating to facility consolidations within the Industrials platform, as well as actions taken to optimize costs related to research and engineering within the Printing & Identification platform.


•	The Fluids segment incurred net restructuring charges of $905 primarily related to implementation costs to optimize the technological infrastructure within the businesses serving the Pumps end market.


•	Corporate restructuring charges of $509 resulted from the Company's decision to realign its businesses into a new segment structure in the first quarter of 2014 following the spin-off of Knowles. Nonrecurring charges related to this realignment, primarily severance expense, are not expected to be significant in total.

The following table details the Company’s severance and other restructuring accrual activity:



	Severance			Exit			Total
Balance at December 31, 2013	$	2,918		$	2,466		$	5,384
Restructuring charges	883			2,522			3,405
Payments	(2,471		)	(1,836		)	(4,307		)
Other, including foreign currency	204			(113		)	91
Balance at March 31, 2014	$	1,534		$	3,039		$	4,573

The accrual balance at March 31, 2014 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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