Restructuring Activities

3 Months Ended

Jun. 30, 2016

Restructuring Activities [Abstract]

Restructuring Activities

Note 6: Restructuring Activities

During the first quarter of fiscal 2017, the Company substantially completed a voluntary retirement program for certain U.S. salaried employees and implemented targeted headcount reductions at several locations.  These restructuring activities are part of the Company’s Strengthen, Diversify and Grow transformational initiative and support the objective of reducing operational and selling, general and administrative (“SG&A”) cost structures.

During the first quarter of fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility and recorded severance costs as a result.  The Company is currently transferring the facility’s production to other Americas segment manufacturing facilities, which it expects to complete in the second half of fiscal 2017.  Also during the first quarter of fiscal 2016, the Company substantially completed the transfer of production from its McHenry, Illinois manufacturing facility, which is now closed.  These restructuring activities reflect the Company’s focus on operating scale manufacturing facilities to improve overall competitiveness and profitability.

In addition, the Company continues to execute restructuring activities within its Europe segment. These restructuring activities have included implementing headcount reductions, exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, consolidating production facilities, 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,
	2016		2015
Employee severance and related benefits	$	1.3	$	1.9
Other restructuring and repositioning expenses		1.0		0.7
Total	$	2.3	$	2.6

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,
	2016			2015
Beginning balance	$	14.7		$	9.9
Additions		1.3			1.9
Payments		(3.1	)		(2.4	)
Effect of exchange rate changes		(0.2	)		0.4
Ending balance	$	12.7		$	9.8

At both June 30, 2016 and March 31, 2016, assets held for sale, which consisted of facilities marketed for sale, totaled $8.5 million and were reported within other noncurrent assets.