(2) Restructuring

Restructuring costs include employee termination benefits, fixed asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. These incremental costs principally include equipment and personnel relocation costs. The Company also incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company’s consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Generally, charges are recorded as restructuring actions are approved and/or implemented.

In the first half of 2013, the Company recorded charges of $31.2 million in connection with its restructuring actions. These charges consist of $21.6 million recorded as cost of sales and $9.6 million recorded as selling, general and administrative expenses. The restructuring charges consist of employee termination benefits of $19.8 million, asset impairment charges of $4.2 million and contract termination costs of $0.3 million, as well as other related costs of $6.9 million. Employee termination benefits were recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Asset impairment charges relate to the disposal of buildings, leasehold improvements and machinery and/or equipment with carrying values of $4.2 million in excess of related estimated fair values. The Company expects to incur approximately $26 million of additional restructuring costs related to activities initiated as of June 29, 2013, and expects that the components of such costs will be consistent with its historical experience. Any future restructuring actions will depend upon market conditions, customer actions and other factors.

A summary of 2013 activity is shown below (in millions):


					Utilization
	Accrual as of January 1, 2013		2013 Charges		Cash			Non-cash			Accrual as of June 29, 2013
Employee termination benefits	$	38.5	$	19.8	$	(19.4	)	$	—		$	38.9
Contract termination costs		5.7		0.3		(0.2	)		—			5.8
Asset impairment charges		—		4.2		—			(4.2	)		—
Other related costs		—		6.9		(6.9	)		—			—

Total	$	44.2	$	31.2	$	(26.5	)	$	(4.2	)	$	44.7