Restructuring Activities

12 Months Ended

Jan. 02, 2016

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Beginning in 2014, 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 2015 and 2014 (in millions):

	January 2, 2016		January 3, 2015
Beginning balance	$	6.1	$	3.9
Provision	8.9		13.2
Less: Payments	13.7		11.0
Ending Balance	$	1.3	$	6.1

The following is a reconciliation of expenses by type for the restructuring projects in 2015 and 2014 (in millions):

	2015		2014
Employee termination expenses	$	0.6	$	6.5
Facility related costs	5.0		4.2
Other expenses	3.3		2.5
Total restructuring expenses	$	8.9	$	13.2

For fiscal 2015, restructuring charges of $7.7 million and $1.2 million were recorded in Cost of Sales and Operating Expenses, respectively, respectively, in the Consolidated Statements of Income. For fiscal 2014, restructuring charges of $12.9 million and $0.3 million were recorded in Cost of Sales and Operating Expenses, respectively, in the Consolidated Statements of Income.

The following table shows the allocation of Restructuring Expenses by segment for 2015 and 2014 (in millions):

	Total		Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions
Restructuring Expenses - 2015	$	8.9	$	6.8	$	1.5	$	0.6
Restructuring Expenses - 2014	$	13.2	$	1.6	$	11.4	$	0.2

The Company's current restructuring activities are expected to conclude by the end of 2016. The Company expects to record aggregate future charges of approximately $9.7 million which includes $3.2 million of employee termination expenses and $6.5 million of facility related and other costs.