Restructuring and Related Costs

6 Months Ended

Jul. 02, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED COSTS

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, Climate Solutions and Power Transmission Solutions segments. As a result of these closures, the Company incurred restructuring and restructuring-related costs. Restructuring costs includes employee termination and plant relocation costs. Restructuring-related costs includes costs directly associated with actions resulting from our simplification initiatives, such as asset write-downs or accelerated depreciation due to shortened useful lives in connection with site closures, discretionary employment benefit costs and other facility rationalization costs. Restructuring costs for employee termination expenses are generally required to be accrued over the employees remaining service period while restructuring costs for plant relocation costs and restructuring-related costs are generally required to be expensed as incurred.

The following is a reconciliation of provisions and payments for the restructuring projects for the three and six months ended July 2, 2016 and July 4, 2015, respectively (in millions):



	Three Months Ended				Six Months Ended
	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
Beginning balance	$	1.0	$	4.0	$	1.3	$	6.1
Provision	1.7		2.2		3.1		3.4
Less: Payments	1.3		3.0		3.0		6.3
Ending Balance	$	1.4	$	3.2	$	1.4	$	3.2

The following is a reconciliation of restructuring and restructuring-related costs for the restructuring projects for the three and six months ended July 2, 2016 and July 4, 2015, respectively (in millions):



	Three Months Ended
	July 2, 2016						July 4, 2015
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales			Operating Expenses		Total
Employee termination expenses	$	0.2	$	0.1	$	0.3	$	(0.1	)	$	—	$	(0.1	)
Facility related costs	0.4		0.4		0.8		0.3			—		0.3
Other expenses	0.6		—		0.6		1.8			0.2		2.0
Total restructuring costs	$	1.2	$	0.5	$	1.7	$	2.0		$	0.2	$	2.2



	Six Months Ended
	July 2, 2016						July 4, 2015
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee termination expenses	$	0.4	$	0.1	$	0.5	$	0.1	$	—	$	0.1
Facility related costs	0.5		0.4		0.9		0.4		0.1		0.5
Other expenses	0.6		—		0.6		1.8		1.0		2.8
Total restructuring costs	$	1.5	$	0.5	$	2.0	$	2.3	$	1.1	$	3.4
Restructuring-related costs:
Other employment benefit expenses	$	0.5	$	0.6	$	1.1	$	—	$	—	$	—
Total restructuring-related costs	$	0.5	$	0.6	$	1.1	$	—	$	—	$	—
Total restructuring and restructuring-related costs	$	2.0	$	1.1	$	3.1	$	2.3	$	1.1	$	3.4

The Company's current restructuring activities are expected to conclude by the end of the first quarter of fiscal 2017. The Company expects to record aggregate future charges relating to previously announced restructuring activities of approximately $6.1 million which includes $1.5 million of employee termination expenses and $4.6 million of facility related and other costs.