6. Restructuring and Other Charges, Net

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

A summary of the pre‑tax cost by restructuring program is as follows:


	Third Quarter Ended				Nine Months Ended
	October 1,		October 2,		October 1,		October 2,
	2017		2016		2017		2016
					(in millions)
Restructuring costs:
2015 Actions	$	0.5	$	0.8	$	2.1	$	2.6
Other Actions		0.9		0.2		1.5		3.0
Total restructuring charges	$	1.4	$	1.0	$	3.6	$	5.6

The Company recorded pre‑tax restructuring costs in its business segments as follows:


	Third Quarter Ended				Nine Months Ended
	October 1,		October 2,		October 1,		October 2,
	2017		2016		2017		2016
					(in millions)
Americas	$	0.7	$	0.8	$	2.6	$	2.4
Europe		0.5		0.3		0.6		3.2
APMEA		0.2		—		0.4		0.2
Corporate		—		(0.1)		—		(0.2)
Total	$	1.4	$	1.0	$	3.6	$	5.6

2015 Actions

In 2015, the Board of Directors of the Company approved a transformation program relating to the Company’s Americas and APMEA businesses, which primarily involved the exit of low-margin, non-core product lines (“phase one”). The Company eliminated approximately $165 million of the combined Americas and APMEA net sales primarily within the Company’s do-it-yourself (DIY) distribution channel.

The second phase of the program involves the consolidation of manufacturing facilities and distribution center network optimization. The second phase of the program involves reducing the square footage of the Company’s Americas facilities, which together with phase one, reduced the Americas net operating footprint by approximately 30%. The second phase is designed to improve the utilization of our remaining facilities, better leverage our cost structure, reduce working capital, and improve execution of customer delivery requirements. As of October 1, 2017, the second phase was substantially complete and is expected to be completed by the end of 2017.

On a combined basis, the total estimated pre-tax cost for the Company’s transformation program related to its Americas and APMEA businesses is approximately $60 million, of which approximately $59 million was incurred as of October 1, 2017. The remaining costs are expected to be incurred through the end of 2017. In the third quarter of 2017, the total expected costs of the planned actions were reduced from approximately $65 million to approximately $60 million, primarily related to reduced expected facility exit costs and reduced other transformation and deployment costs. Total expected pre-tax charges include restructuring costs of approximately $18.5 million, goodwill and intangible asset impairments of $13.5 million and other transformation and deployment costs of approximately $28 million. The other transformation and deployment costs include consulting and project management fees, inventory write-offs, and other associated costs.

The following table summarizes by type, the total expected, incurred and remaining pre-tax restructuring costs for the Company’s transformation program related to its Americas and APMEA businesses (phase one and phase two combined):


							Facility
			Legal and		Asset		exit
	Severance		consultancy		write‑downs		and other		Total
	(in millions)
Costs incurred—2015	$	8.5		0.7		1.6		2.8		13.6
Costs incurred—2016		(1.5)		0.2		2.9		0.5		2.1
Costs incurred—first quarter 2017		—		—		—		—		—
Costs incurred—second quarter 2017		0.2		—		1.2		0.2		1.6
Costs incurred—third quarter 2017		—		—		0.5		—		0.5
Remaining costs to be incurred		—		—		0.5		0.2		0.7
Total expected restructuring costs	$	7.2	$	0.9	$	6.7	$	3.7	$	18.5

The following table summarizes total restructuring costs incurred for the three and nine months ended October 1, 2017, incurred program to date and expected remaining pre-tax restructuring costs by business segment for the Company’s Americas and APMEA 2015 transformation program:


	Third Quarter Ended		Nine Months Ended						Total
	October 1,		October 1,		Incurred		Remaining		Expected
	2017		2017		to Date		costs		Costs
			(in millions)
APMEA	$	—	$	0.2	$	4.6	$	—	$	4.6
Americas		0.5		1.9		13.2		0.7		13.9
Total restructuring costs	$	0.5	$	2.1	$	17.8	$	0.7	$	18.5

Details of the restructuring reserve activity for the Company’s Americas and APMEA 2015 transformation program for the period ended October 1, 2017 are as follows:


							Facility
			Legal and		Asset		exit
	Severance		consultancy		write-downs		and other		Total
	(in millions)
Balance at December 31, 2016	$	1.2	$	—	$	—	$	—	$	1.2
Net pre-tax restructuring charges		—		—		—		—		—
Utilization and foreign currency impact		(0.6)		—		—		—		(0.6)
Balance at April 2, 2017	$	0.6	$	—	$	—	$	—	$	0.6
Net pre-tax restructuring charges		0.2		—		1.2		0.2		1.6
Utilization and foreign currency impact		(0.1)		—		(1.2)		(0.2)		(1.5)
Balance at July 2, 2017	$	0.7	$	—	$	—	$	—	$	0.7
Net pre-tax restructuring charges		—		—		0.5		—		0.5
Utilization and foreign currency impact		—		—		(0.5)		—		(0.5)
Balance at October 1, 2017	$	0.7	$	—	$	—	$	—	$	0.7

Other Actions

The Company periodically initiates other actions which are not part of a major program. In the fourth quarter of 2015, management initiated certain restructuring actions and strategic initiatives with respect to the Company’s Europe segment in response to the economic challenges in Europe at the time and additional product rationalization efforts. The restructuring actions included severance benefits and limited costs relating to asset write offs, professional fees and relocation.

Total “Other Actions” pre-tax restructuring expense was $0.9 million and $1.5 million for the three and nine months ended October 1, 2017, respectively. Total “Other Actions” pre-tax restructuring expense was $0.2 million and $3.0 million for the three and nine months ended October 2, 2016, respectively. Included in “Other Actions” is the 2015 Europe restructuring initiatives, in addition to other minor initiatives for which the Company incurred restructuring expenses through the first nine months of 2017 and 2016.

The total pre-tax charge for the Europe 2015 restructuring initiatives is expected to be approximately $10 million, of which approximately $8.4 million has been incurred as of October 1, 2017.The remaining expected costs relate to severance and legal costs and are expected to be completed in 2017.

The following table summarizes total expected, incurred and remaining pre-tax restructuring costs for the Europe 2015 restructuring actions:


					Facility
			Legal and		Exit
	Severance		consultancy		and other		Total
	(in millions)
Costs incurred—2015	$	6.6	$	—	$	0.3	$	6.9
Costs incurred—2016		1.3		0.5		—		1.8
Adjustments to restructuring costs — first quarter 2017		(0.3)		—		—		(0.3)
Costs incurred—second quarter 2017		—		—		—		—
Costs incurred—third quarter 2017		—		—		—		—
Remaining costs to be incurred		1.4		0.2		—		1.6
Total expected restructuring costs	$	9.0	$	0.7	$	0.3	$	10.0

Details of the Company’s Europe 2015 restructuring reserve activity for the nine months ended October 1, 2017 are as follows:


			Legal and		Facility exit
	Severance		Consultancy		and other		Total
	(in millions)
Balance at December 31, 2016	$	4.8	$	—	$	—	$	4.8
Net pre-tax restructuring adjustments		(0.3)		—		—		(0.3)
Utilization and foreign currency impact		(0.9)		—		—		(0.9)
Balance at April 2, 2017	$	3.6	$	—	$	—	$	3.6
Net pre-tax restructuring charges		—		—		—		—
Utilization and foreign currency impact		(0.3)		—		—		(0.3)
Balance at July 2, 2017	$	3.3	$	—	$	—	$	3.3
Net pre-tax restructuring adjustments		—		—		—		—
Utilization and foreign currency impact		(0.7)		—		—		(0.7)
Balance at October 1, 2017	$	2.6	$	—	$	—	$	2.6