Restructuring Activities

3 Months Ended

Apr. 04, 2015

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

Beginning in 2013, the Company announced the closure of several of its manufacturing and warehouse facilities and consolidation into existing facilities to simplify manufacturing operations in its Commercial and Industrial Systems and Climate Solutions segments. As a result of these closures, the Company incurred expenses including employee termination and plant relocation costs. The employee termination expenses are accrued over the employees remaining service period while the plant relocation costs are expensed as incurred.

The following is a reconciliation of provisions and payments for the restructuring projects for the three months ended April 4, 2015 and March 29, 2014, respectively (in millions):



	April 4, 2015		March 29, 2014
Beginning balance	$	6.1	$	3.9
Provision	1.2		4.2
Less: Payments	3.3		2.6
Ending Balance	$	4.0	$	5.5

The following is a reconciliation of expenses by type for the restructuring projects for the three months ended April 4, 2015 and March 29, 2014, respectively (in millions):



	Three Months Ended
	April 4, 2015		March 29, 2014
Employee termination expenses	$	0.2	$	1.4
Facility related costs	0.2		1.6
Other expenses	0.8		1.2
Total restructuring expenses	$	1.2	$	4.2

For the three months ended April 4, 2015 and March 29, 2014, restructuring charges of $0.3 million and $4.2 million were recorded in Cost of Sales, respectively. The remaining restructuring charges of $0.9 million for the three months ended April 4, 2015 were recorded in operating expenses.

The Company's current restructuring activities are expected to conclude by the end of 2015. The Company expects to record aggregate future charges relating to previously announced restructuring activities of approximately $7.5 million which includes $1.5 million of employee termination expenses and $6.0 million of facility related and other costs.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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