Restructuring

November 2015 restructuring program

In the fourth quarter of 2015, the Company committed to a strategic roadmap focused on growth and optimization of the portfolio, developing leading cost and efficiency positions, growth through innovation and cultivation of a high-performance culture. In 2017, the Company approved additional expenditures to further expand, strengthen and accelerate the Company's program targeting operational effectiveness and efficiencies. As of December 31, 2017 the total remaining costs are immaterial.

Total expected costs and costs incurred to date by reportable segment are below (in millions):



	North America		Europe		Latin America		Total
Costs incurred 2015 - Cost of sales	$	0.1	$	5.0	$	1.7	$	6.8
Costs incurred 2015 - SG&A	—		1.7		0.1		1.8
Total costs incurred, December 31, 2015	$	0.1	$	6.7	$	1.8	$	8.6
Costs incurred 2016 - Cost of sales	$	7.4	$	10.5	$	2.6	$	20.5
Costs incurred 2016 - SG&A	41.3		3.2		0.8		45.3
Total costs incurred, December 31, 2016	$	48.7	$	13.7	$	3.4	$	65.8
Costs incurred 2017 - Cost of sales	$	6.9	$	0.1	$	0.3	$	7.3
Costs incurred 2017 - SG&A	24.6		1.1		—		25.7
Total costs incurred, December 31, 2017	$	31.5	$	1.2	$	0.3	$	33.0
Total aggregate costs to date	$	80.3	$	21.6	$	5.5	$	107.4

Changes in the restructuring reserve and activity for the years ended December 31, 2017 and 2016 are below (in millions):



	Employee Separation Costs			Asset-Related Costs			Other Costs			Total
Balance, December 31, 2015	$	1.3		$	—		$	3.2		$	4.5
Net provisions	$	10.5		$	19.4		$	35.9		$	65.8
Net benefits charged against the assets and other	—			(19.4		)	(0.7		)	(20.1		)
Payments	(5.8		)	—			(25.0		)	(30.8		)
Foreign currency translation	(0.1		)	—			(0.1		)	(0.2		)
Balance, December 31, 2016	$	5.9		$	—		$	13.3		$	19.2
Net provisions	$	2.7		$	2.4		$	27.9		$	33.0
Net benefits charged against the assets and other	—			(2.4		)	(0.2		)	(2.6		)
Payments	(7.6		)	—			(39.7		)	(47.3		)
Foreign currency translation	0.2			—			0.5			0.7
Balance, December 31, 2017	$	1.2		$	—		$	1.8		$	3.0
Total aggregate costs to date	$	15.4		$	23.7		$	68.3		$	107.4

Employee Separation Costs

The Company recorded employee separation costs of $2.7 million, $10.5 million and $2.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. The employee separation charges were $1.4 million, $6.3 million and $0.1 million in North America and $1.3 million, $3.4 million and $1.4 million in Europe for the years ended December 31, 2017, 2016 and 2015 respectively. The employee separation charges were $0.8 million and $0.7 million in Latin America for the years ended December 31, 2016 and 2015, respectively.

Employee separation costs include severance and retention bonuses. As of December 31, 2017, employee separation costs included severance charges for approximately 480 employees; approximately 360 of these employees were classified as manufacturing employees and approximately 120 of these employees were classified as non-manufacturing employees. The charges relate to involuntary separations based on current salary levels and past service periods and are either considered one-time employee termination benefits in accordance with ASC 420 - Exit or Disposal Cost Obligations ("ASC 420") or charges for contractual termination benefits under ASC 712 - Compensation - Nonretirement Postemployment Benefits ("ASC 712").

Asset-Related Costs

The Company recorded asset-related costs of $2.4 million, $19.4 million and $1.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. The asset-related charges were $2.3 million and $13.9 million in North America for the years ended December 31, 2017 and 2016, respectively. The asset-related charges were $0.1 million, $3.7 million and $1.0 million in Europe for the years ended December 31, 2017, 2016 and 2015, respectively. The asset-related charges for the years ended December 31, 2016 and 2015 were $1.8 million and $0.9 million in Latin America, respectively.

Asset-related costs consist of asset write-downs, including goodwill and intangible assets, and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets to be classified as held-for-sale or to be disposed of, as well as asset impairment charges for asset groups to be held-and-used in locations which are being restructured and it has been determined the undiscounted cash flows expected to result from the use and eventual disposition of the assets are less than their carrying value. Refer to Note 9 - Goodwill and Other Intangible Assets, net for additional information and refer to Note 21 - Fair Value for additional details regarding valuation techniques used to determine fair value.

The Company notes the plan to abandon a long-lived asset before the end of its previously estimated useful life is a change in accounting estimate per ASC 250 - Accounting Changes and Error Corrections. The annual depreciation impact from the asset write-downs and changes in estimated useful lives is not material.

Other Costs

The Company recorded other restructuring-type charges of $27.9 million, $35.9 million and $4.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. The other restructuring-type charges were $27.8 million and $28.5 million in North America for the years ended December 31, 2017 and 2016, respectively. In Europe, the Company recorded a benefit of $0.2 million for the year ended December 31, 2017 and other restructuring-type charges of $6.6 million and $4.3 million for the years ended December 31, 2016 and 2015, respectively. The other restructuring-type charges were $0.3 million, $0.8 million and $0.2 million in Latin America for the years ended December 31, 2017, 2016 and 2015, respectively.

Other restructuring-type charges are incurred as a direct result of the restructuring program. These restructuring-type charges primarily include project management costs, such as consulting fees related to the supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes, as well as working capital write-downs not associated with normal operations, equipment relocation, termination of contracts and other immaterial costs.

July 2014 restructuring program

In third quarter of 2014, the Company announced a comprehensive restructuring program. As of December 31, 2017, this program is substantially complete and future estimated costs are expected to be immaterial. The restructuring program was focused on the closure of certain underperforming assets as well as the consolidation and realignment of other facilities. The Company also implemented initiatives to reduce SG&A expenses globally. Total aggregate costs incurred as part of the program were approximately $220 million and the remaining restructuring reserve at December 31, 2017 and December 31, 2016 was not material. Total costs incurred to date by reportable segment for the years ended December 31, 2016 and 2015 are below (in millions). Total costs incurred were immaterial for the year ended December 31, 2017.



	North America		Europe		Latin America		Africa/Asia Pacific			Total
Costs incurred 2015 - Cost of sales	$	6.4	$	7.4	$	3.4	$	(0.1	)	$	17.1
Costs incurred 2015 - SG&A	5.5		14.7		4.5		0.2			24.9
Total costs incurred, December 31, 2015	$	11.9	$	22.1	$	7.9	$	0.1		$	42.0
Costs incurred 2016 - Cost of sales	$	5.7	$	0.7	$	1.7	$	—		$	8.1
Costs incurred 2016 - SG&A	0.3		2.0		1.2		—			3.5
Total costs incurred, December 31, 2016	$	6.0	$	2.7	$	2.9	$	—		$	11.6