Restructuring Charges

6 Months Ended

Jul. 04, 2015

Restructuring Charges

Restructuring Charges (Credits)

A summary of the restructuring reserve activity from January 3, 2015 to July 4, 2015 is as follows (in millions):

	January 3, 2015		Net Additions		Usage			Currency			July 4, 2015
Severance and related costs	$	81.2	$	25.8	$	(36.5	)	$	(3.4	)	$	67.1
Facility closures	16.4		4.1		(4.6		)	(0.2		)	15.7
Total	$	97.6	$	29.9	$	(41.1	)	$	(3.6	)	$	82.8

For the six months ended July 4, 2015, the Company recognized $29.9 million of net restructuring charges. This amount reflects $25.8 million of net severance charges associated with the reduction of approximately 420 employees. The Company also had facility closure costs of $4.1 million.

For the three months ended July 4, 2015, the Company recognized net restructuring charges of $5.0 million relating to the reduction of approximately 180 employees, net of reversals relating to the elimination of excess severance accruals due to changes in initial estimates of prior year actions. The Company also had net facility closure costs of $0.3 million in the second quarter of 2015.

The majority of the $82.8 million of reserves remaining as of July 4, 2015 is expected to be utilized within the next 12 months.

Segments: The $29.9 million restructuring charge for the six months ended July 4, 2015 includes: $15.5 million of net charges pertaining to the Tools & Storage segment; $13.6 million of net charges pertaining to the Security segment; $1.4 million of net charges pertaining to the Industrial segment; and $0.6 million of net reversals pertaining to Corporate. The $5.0 million restructuring charge for the three months ended July 4, 2015 includes: $1.5 million of net reserve reductions pertaining to the Tools & Storage segment; $6.6 million of net charges pertaining to the Security segment; $0.7 million of net charges pertaining to the Industrial segment; and $0.8 million of net reserve reductions pertaining to Corporate.