Restructuring Activities

3 Months Ended

Jun. 30, 2015

Restructuring Activities [Abstract]

Restructuring Activities

Note 6: Restructuring Activities

During the first quarter of fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility. The Company intends to transfer the facility’s current production to other existing Americas segment manufacturing facilities.  As a result of the planned closure, the Company recorded $1.8 million of restructuring expenses, primarily related to severance costs.  Also during the first quarter of fiscal 2016, the Company substantially completed the transfer of production from its McHenry, Illinois manufacturing facility, which it plans to close, to other existing Americas segment manufacturing facilities.  These restructuring activities reflect the Company’s focus on operating scale manufacturing facilities to improve overall competitiveness and profitability.

During fiscal 2015, the Company initiated a headcount reduction plan for its Brazil manufacturing facility within its Americas segment. The headcount reductions have been in response to the economic slowdown in Brazil and reflect the Company’s objective to maintain profitability in this business despite lower sales volume.

During fiscal 2013, the Company initiated restructuring activities within its Europe segment.  The restructuring activities have included exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, consolidating production facilities, implementing headcount reductions, and disposing of and selling certain underperforming or non-strategic assets. The Company designed these activities to align the cost structure of the segment with its strategic focus on the commercial vehicle, off-highway, automotive component, and engine product markets, while improving gross margin and return on average capital employed.

Restructuring and repositioning expenses were as follows:

	Three months ended June 30,
	2015		2014
Employee severance and related benefits	$	1.9	$	0.3
Other restructuring and repositioning expenses		0.7		0.5
Total	$	2.6	$	0.8

Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:

	Three months ended June 30,
	2015			2014
Beginning balance	$	9.9		$	19.4
Additions		1.9			0.3
Payments		(2.4	)		(1.9	)
Effect of exchange rate changes		0.4			(0.1	)
Ending balance	$	9.8		$	17.7

During the first quarter of fiscal 2016, the Company reclassified $4.6 million of property, plant and equipment related to a manufacturing facility in the Europe segment to assets held for sale.  At June 30, 2015 and March 31, 2015, assets held for sale of $8.5 million and $3.2 million, respectively, were included in other noncurrent assets and consisted of facilities that the Company is actively marketing for sale.