NOTE 7 – RESTRUCTURING CHARGES

The following is a reconciliation of the beginning and ended restructuring reserve balances for the years ended October 31, 2014, 2013 and 2012 (Dollars in millions):


	Employee Separation Costs			Other costs			Total
Balance at October 31, 2012	$	6.2		$	1.8		$	8.0
Costs incurred and charged to expense		2.8			2.0			4.8
Costs paid or otherwise settled		(7.2	)		(2.6	)		(9.8	)

Balance at October 31, 2013	$	1.8		$	1.2		$	3.0

Costs incurred and charged to expense		12.0			4.1			16.1
Costs paid or otherwise settled		(10.9	)		(4.1	)		(15.0	)

Balance at October 31, 2014	$	2.9		$	1.2		$	4.1

The focus for restructuring activities in 2014 was to rationalize operations and close underperforming assets in both the Flexible Products & Services and the Rigid Industrial Packaging & Services segments. During 2014, the Company recorded restructuring charges of $16.1 million, consisting of $12.0 million in employee separation costs and $4.1 million in other restructuring costs, primarily consisting of lease termination costs, professional fees and other miscellaneous exit costs. There were eight plants closed in 2014, and a total of 850 employees severed throughout 2014 as part of the Company’s restructuring efforts. Anticipated cost savings related to 2014 restructuring activity is expected to be approximately $16.8 million with payback periods ranging from one to five years among the plans.

The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-K. Remaining amounts expected to be incurred were $9.2 million and $6.6 million as of October 31, 2014 and 2013, respectively. The increase was due to the formulation of new plans during the period offset by the realization of expenses from plans formulated in prior periods. (Dollars in millions):


	Amounts expected to be incurred		Amounts Incurred in 2014		Amounts remaining to be incurred
Rigid Industrial Packaging & Services:
Employee separation costs	$	11.4	$	7.5	$	3.9
Other restructuring costs		5.0		2.1		2.9

		16.4		9.6		6.8
Flexible Products & Services:
Employee separation costs		4.7		4.5		0.2
Other restructuring costs		4.2		2.0		2.2

		8.9		6.5		2.4

	$	25.3	$	16.1	$	9.2

The focus for restructuring activities in 2013 was on the rationalization of operations and contingency actions in Rigid Industrial Packaging & Services. During 2013, the Company recorded restructuring charges of $4.8 million, consisting of $2.8 million in employee separation costs and $2.0 million in other restructuring costs, primarily consisting of lease termination costs, professional fees and other miscellaneous exit costs. There were no plants closed in 2013, but there was a total of 278 employees severed throughout 2013 as part of the Company’s restructuring efforts.

The focus for restructuring activities in 2012 was on the consolidation of operations in the Flexible Products & Services segment as part of the ongoing implementation of the Greif Business System and rationalization of operations and contingency actions in Rigid Industrial Packaging & Services. During 2012, the Company recorded restructuring charges of $23.1 million, consisting of $13.4 million in employee separation costs and $9.7 million in other restructuring costs, primarily consisting of lease termination costs, professional fees and other miscellaneous exit costs. Four plants in the Rigid Industrial Packaging & Services segment were closed. There were a total of 513 employees severed throughout 2012 as part of the Company’s restructuring efforts.