Restructuring Restructuring

6 Months Ended

Jul. 03, 2016

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In the second quarter of 2016, the Company has taken restructuring actions in the Americas and Italy to manage operating expenses and to prepare the businesses for future growth. The restructuring measures taken in the Americas are a result of recent revenue trends. The restructuring in Italy is designed to reposition the Company’s operating model to pursue growth in staffing fee-based income and specialized temporary staffing business.

Restructuring costs incurred in the second quarter of 2016 totaled $3.4 million, as detailed below, and are recorded entirely in selling, general and administrative (“SG&A”) expenses in the consolidated statement of earnings.

	Severance Costs		Lease Termination Costs		Total
	(In millions of dollars)
Americas Commercial	$	1.5	$	0.4	$	1.9
Americas PT	0.3		—		0.3
EMEA Commercial	1.0		0.1		1.1
EMEA PT	0.1		—		0.1
Total	$	2.9	$	0.5	$	3.4

A summary of the global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars).

Balance as of year-end 2015	$	0.5
Reductions for cash payments related to all restructuring activities	(0.4		)
Balance as of first quarter-end 2016	0.1
Additions charged to Americas	2.2
Additions charged to EMEA	1.2
Reductions for cash payments related to all restructuring activities	(0.7		)
Balance as of second quarter-end 2016	$	2.8

The remaining balance of $2.8 million as of second quarter-end 2016 represents primarily severance costs, and the majority is expected to be paid in 2016. No material adjustments are expected to be recorded.