Restructuring Charges:

As part of the effort to achieve our strategic priorities of manufacturing and sourcing excellence and expense reduction, we initiated various rationalization actions designed to lower our cost structure. As more fully explained in Note 19, restructuring charges are not included in our calculation of segment profit (loss).

Detailed below are descriptions of the ongoing restructuring actions and their related activity in 2012.

Refrigeration

We began to exit OEM coil manufacturing and contract coil manufacturing in our Refrigeration operations in Milperra, Australia in 2010. The exit of our OEM coil manufacturing was substantially complete in 2010. We initiated restructuring activities related to the exit of contract coil manufacturing in the third quarter of 2010, and in 2012, we recognized the remaining $0.6 million in plant closure costs. Also, in 2012, we reversed $0.3 million in estimated severance expenses based on actual costs incurred. We do not expect to incur any future costs related to the exit of OEM coil manufacturing or contract coil manufacturing in Milperra, Australia.

Corporate and Other

In the third quarter of 2011, we terminated our airplane lease, closed the aviation department, and reorganized certain support functions within our organization. Substantially all of the costs related to these activities were recognized in the third quarter of 2011 and consisted of $4.3 million in lease termination costs, $1.1 million in severance costs and $0.4 million in accelerated depreciation and other charges. We do not expect to incur any future costs related to this restructuring activity.

Regional Distribution Network

In the fourth quarter of 2008, we commenced the transition of activities performed at our North American Parts Center in Des Moines, Iowa to other locations, including our North American Distribution Center in Marshalltown, Iowa. In 2012, we recorded expense of $2.7 million primarily related to lease termination charges. We do not expect to incur any future costs related to this restructuring activity.

Total Restructuring

Information regarding the restructuring charges for all plans related to continuing operations is as follows (in millions):



	Charges Incurred in 2012		Charges Incurred to Date		Total Charges Expected to be Incurred
Severance and related expense	$	1.2	$	27.3	$	27.3
Asset write-offs and accelerated depreciation	—		10.0		10.0
Equipment moves	0.1		1.5		1.5
Lease termination	2.4		7.2		7.2
Other	0.5		12.2		12.2
Total	$	4.2	$	58.2	$	58.2

Information regarding the restructuring charges by segment is as follows (in millions):



	Charges Incurred in 2012			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	2.7		$	20.4	$	20.4
Commercial Heating & Cooling	—			7.8		7.8
Refrigeration	1.6			24.3		24.3
Corporate & Other	(0.1		)	5.7		5.7
Total	$	4.2		$	58.2	$	58.2

Restructuring reserves related to continuing operations are included in Accrued Expenses in the accompanying Consolidated Balance Sheets. The table below details activity within the restructuring reserves (in millions):



Description of Reserves	Balance as of December 31, 2011		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2012
Severance and related expense	$	2.3	$	1.2	$	(2.8	)	$	—		$	0.7
Asset write-offs and accelerated depreciation	—		—		—			—			—
Equipment moves	—		0.1		(0.1		)	—			—
Lease termination	—		2.4		(1.2		)	—			1.2
Other	0.1		0.5		—			(0.1		)	0.5
Total restructuring reserves	$	2.4	$	4.2	$	(4.1	)	$	(0.1	)	$	2.4



Description of Reserves	Balance as of December 31, 2010		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2011
Severance and related expense	$	3.7	$	3.8	$	(5.2	)	$	—		$	2.3
Asset write-offs and accelerated depreciation	—		1.0		0.3			(1.3		)	—
Equipment moves	—		0.5		(0.5		)	—			—
Lease termination	0.2		4.1		(4.3		)	—			—
Other	0.2		3.1		(3.2		)	—			0.1
Total restructuring reserves	$	4.1	$	12.5	$	(12.9	)	$	(1.3	)	$	2.4

Plans related to Discontinued Operations

We began to reorganize certain administrative functions and the management structure of our Service Experts business in the

fourth quarter of 2010. In 2012, we recognized $1.1 million of severance and other costs in Loss from discontinued operations. Restructuring reserves of $0.2 million are included in Liabilities of discontinued operations as of December 31, 2012.