Restructuring Charges

6 Months Ended

Jul. 02, 2016

Restructuring Charges

Restructuring Charges

A summary of the restructuring reserve activity from January 2, 2016 to July 2, 2016 is as follows:

(Millions of Dollars)	January 2, 2016		Net Additions		Usage			Currency			July 2, 2016
Severance and related costs	$	44.3	$	9.7	$	(27.6	)	$	0.3		$	26.7
Facility closures and asset impairments	14.4		8.5		(18.0		)	(0.1		)	4.8
Total	$	58.7	$	18.2	$	(45.6	)	$	0.2		$	31.5

For the six months ended July 2, 2016, the Company recognized net restructuring charges of $18.2 million. This amount reflects $9.7 million of net severance charges associated with the reduction of approximately 602 employees. The Company also recognized $4.2 million of facility closure costs and $4.3 million of asset impairments.

For the three months ended July 2, 2016, the Company recognized net restructuring charges of $10.2 million. This amount reflects $6.0 million of net severance charges associated with the reduction of approximately 305 employees. The Company also recognized $4.2 million of facility closure costs.

The majority of the $31.5 million of reserves remaining as of July 2, 2016 is expected to be utilized within the next 12 months.

Segments: The $18 million net restructuring charge for the six months ended July 2, 2016 includes: $1 million of net charges pertaining to the Tools & Storage segment; $8 million of net charges pertaining to the Security segment; $4 million of net charges pertaining to the Industrial segment; and $5 million of net charges pertaining to Corporate.

The $10 million net restructuring charge for the three months ended July 2, 2016 includes: $7 million of net charges pertaining to the Security segment; $2 million of net charges pertaining to the Industrial segment; and $1 million of net charges pertaining to Corporate.