Restructuring Activities

6 Months Ended

Jul. 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 and six months ended July 4, 2015 and June 28, 2014, respectively (in millions):



	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Beginning balance	$	4.0	$	5.5	$	6.1	3.9
Provision	2.2		3.6		3.4		7.8
Less: Payments	3.0		1.8		6.3		4.4
Ending Balance	$	3.2	$	7.3	$	3.2	$	7.3

The following is a reconciliation of expenses by type for the restructuring projects for the three and six months ended July 4, 2015 and June 28, 2014, respectively (in millions):



	Three Months Ended					Six Months Ended
	July 4, 2015			June 28, 2014		July 4, 2015		June 28, 2014
Employee termination expenses	$	(0.1	)	$	2.0	$	0.1	$	3.4
Facility related costs	0.3			1.3		0.5		2.9
Other expenses	2.0			0.3		2.8		1.5
Total restructuring expenses	$	2.2		$	3.6	$	3.4	$	7.8

For the three and six months ended July 4, 2015 and June 28, 2014, restructuring charges recorded in Cost of Sales were $2.0 million and $2.3 million and $3.3 million and $7.5 million respectively. The remaining restructuring charges of $0.2 million and $1.1 million and $0.3 million and $0.3 million for the three and six months ended July 4, 2015 and June 28, 2014 respectively 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 $5.4 million which includes $1.0 million of employee termination expenses and $4.4 million of facility related and other costs.