RESTRUCTURING

In June 2011, the Company announced Phase IV of the Global Manufacturing Realignment Program. The Company transferred approximately 260,000 annual man hours of manufacturing activity from the Oklahoma City, Oklahoma facility primarily to the Linares, Mexico facility with a small portion transferred to another Oklahoma City based facility. Transfers related to the Oklahoma City facility were substantially complete at the end of the first quarter 2012. The Company also expects to incur miscellaneous expenses associated with realignments and movements of manufacturing and distribution facilities in a variety of international locations, including the relocation to a new manufacturing facility in Joinville, Brazil.

The Company has estimated the pretax charge for Phase IV to be between $2.6 million and $5.2 million, of which $1.2 million to $3.5 million is for closing the Oklahoma City manufacturing facility. Charges related to Phase IV began in the second quarter of 2011 and will substantially end in the fourth quarter of 2012, with the exception of asset dispositions, which may be incomplete at the end of 2012. Phase IV charges include severance, equipment relocation, and asset write-offs. The Company expects approximately 50.0 to 60.0 percent of the charges will be non-cash.

Costs incurred in the third quarter and nine months ended September 29, 2012, included in the “Restructuring (income)/expense” line of the Company's condensed consolidated statements of income, are as follows:



(In millions)	Third Quarter Ended
	September 29, 2012
	Water Systems		Fueling Systems		Other		Consolidated
Equipment relocation	$	—	$	—	$	—	$	—
Asset write-off	0.1		—		—		0.1
Asset sale	—		—		—		—
Other	—		—		—		—
Total	$	0.1	$	—	$	—	$	0.1



(In millions)	Nine Months Ended
	September 29, 2012
	Water Systems			Fueling Systems		Other		Consolidated
Equipment relocation	$	0.1		$	—	$	—	$	0.1
Asset write-off	0.3			—		—		0.3
Asset sale	(0.4		)	—		—		(0.4		)
Other	0.1			—		—		0.1
Total	$	0.1		$	—	$	—	$	0.1

Restructuring expenses of $0.6 million and $1.5 million were incurred in the third quarter and nine months ended October 1, 2011, respectively, primarily for the Water Systems realignment.

As of September 29, 2012, there were no restructuring reserves. As of October 1, 2011, there was $0.2 million in restructuring reserves primarily for severance.