Restructuring Charges

12 Months Ended

Dec. 31, 2013

Restructuring Charges:

We record restructuring charges associated with management-approved restructuring plans to reorganize or to remove duplicative headcount and infrastructure within our businesses. Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related activities. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. Restructuring charges are not included in our calculation of segment profit (loss), as more fully explained in Note 19.

Restructuring Activities in 2013

In 2008, our Residential Heating & Cooling segment 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 2013 and 2012, we recorded expenses of $1.3 million and $2.7 million, respectively, primarily related to the relocation of inventory and lease termination charges. These activities were substantially completed in the third quarter of 2013 and we do not expect to incur any future costs.

All other restructuring activities in 2013, including ongoing restructuring activities as of December 31, 2013, were individually insignificant.

Total Restructuring

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



	Incurred in 2013		Incurred to Date		Total Expected to be Incurred
Severance and related expense	$	2.7	$	12.7	$	12.7
Asset write-offs and accelerated depreciation	0.7		1.7		1.7
Equipment moves	0.1		0.4		0.4
Lease termination	—		2.6		2.6
Other	1.5		8.2		8.2
Total	$	5.0	$	25.6	$	25.6

While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions):



	Incurred in 2013		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	2.6	$	8.9	$	8.9
Commercial Heating & Cooling	1.2		8.1		8.1
Refrigeration	1.2		8.6		8.6
Corporate & Other	—		—		—
Total	$	5.0	$	25.6	$	25.6

Restructuring reserves are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details activity in within the restructuring reserves (in millions):



Description of Reserves:	Balance as of December 31, 2012		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2013
Severance and related expense	$	0.7	$	2.7	$	(1.6	)	$	(0.2	)	$	1.6
Asset write-offs and accelerated depreciation	—		0.7		—			(0.7		)	—
Equipment moves	—		0.1		(0.1		)	—			—
Lease termination	1.2		—		(1.2		)	—			—
Other	0.5		1.5		(2.0		)	—			—
Total restructuring reserves	$	2.4	$	5.0	$	(4.9	)	$	(0.9	)	$	1.6



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

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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