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EXIT AND DISPOSAL ACTIVITIES - (Notes)
 12 Months Ended
Dec. 31, 2013
Restructuring and Related Activities [Abstract]  
EXIT AND DISPOSAL ACTIVITIES
EXIT AND DISPOSAL ACTIVITIES

The Company has initiated various exit and disposal activities including, but not limited to, the matters described below. Employee separation expenses are comprised of severance, outplacement and retention bonus payments. Other costs include expenses associated with asset write-downs, terminating contractual arrangements, costs to prepare facilities for closure, and costs to move equipment and products to other facilities.

Manufacturing Rationalization and Relocation Initiative

On March 11, 2013, the Company's Board of Directors approved the following initiatives: (i) construction of two new manufacturing facilities on a campus in Mexico to be shared by the RHC and CES segments, which will provide an integrated manufacturing footprint for both RHC and CES; (ii) consolidation of two North American manufacturing facilities in the RHC segment into the new, shared facility in Mexico; and (iii) transfer of product manufacturing from certain manufacturing facilities in the CES segment to the new, shared campus in Mexico, as well as transferring and expanding parts and sub-assembly operations in Mexico (collectively, the "Manufacturing Rationalization & Relocation Initiative").

The Company expects that the range of total cost to complete the Manufacturing Rationalization & Relocation Initiative is as follows:

 
 
Low
 
High
 
 
(Dollar amounts in millions)
Exit & Disposal Activities (1)
 
$
18.0

 
$
21.0

Capital Expenditures
 
4.0

 
5.0

 
 
$
22.0

 
$
26.0

 
(1)
Exit and disposal activities are comprised of the following:
 
 
Low
 
High
 
 
(Dollar amounts in millions)
Machinery and Equipment Relocation & Installation
 
$
6.5

 
$
7.5

Employee-related Costs
 
10.5

 
11.5

Other Exit Related Costs
 
1.0

 
2.0

 
 
$
18.0

 
$
21.0


 
Cash expenditures began in the second quarter of 2013 and are expected to continue through fiscal year 2015. During the year ended December 31, 2013, the Company recorded $8.3 million (of which approximately $7.9 million and $0.4 million was recorded in the RHC and CES segments, respectively) of severance and other costs related to the Manufacturing Rationalization & Relocation Initiative.

The following table sets forth the changes to the liability for the Manufacturing Rationalization & Relocation Initiative during the year ended December 31, 2013:

 
 
Severance
 
Other Costs
 
Total
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
Balance, December 31, 2012
 
$
—

 
$
—

 
$
—

Provision
 
6.3

 
2.0

 
8.3

Payments
 
—

 
(1.3
)
 
(1.3
)
Other
 
—

 
—

 
—

Balance, December 31, 2013
 
$
6.3

 
$
0.7

 
$
7.0



Warehousing and Distribution Consolidation

On March 11, 2013, in connection with the Company's efforts to optimize supply chain performance, the Company's Board of Directors also approved entry into a five-year agreement with a third party logistics service provider to outsource certain warehousing and distribution activities in the Company's North American operating segments and facilitate the consolidation of North American warehousing distribution centers (the "Warehousing & Distribution Consolidation"). The Company expects these initiatives to generate cost savings as a result of moving to shared distribution centers and leveraging its scale by optimizing shipments and consolidating facilities.

The Company expects that the range of total cost to complete the Warehousing and Distribution Consolidation is as follows:

 
 
Low
 
High
 
 
(Dollar amounts in millions)
Lease Cancellation Costs
 
$
1.5

 
$
2.0

Employee-Related Costs
 
1.0

 
1.5

Other Exit Related Costs
 
2.0

 
3.0

 
 
$
4.5

 
$
6.5

The Company expects the Warehousing & Distribution Consolidation costs to be incurred over a 12-month period, which commenced in the third quarter of 2013. During the year ended December 31, 2013, the Company recorded $1.8 million (of which approximately $1.3 million and $0.5 million was recorded in the TECH and DMS segments, respectively) of severance and other costs related to the Warehousing and Distribution Consolidation.

The following table sets forth the changes to the liability for the Warehousing and Distribution Consolidation during the year ended December 31, 2013:

 
 
Severance
 
Other Costs
 
Total
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
Balance, December 31, 2012
 
$
—

 
$
—

 
$
—

Provision
 
1.0

 
0.8

 
1.8

Payments
 
(0.3
)
 
(0.5
)
 
(0.8
)
Other
 
—

 
—

 
—

Balance, December 31, 2013
 
$
0.7

 
$
0.3

 
$
1.0



TECH Segment Combination

The Company has combined, or is in the process of combining, the operations of certain subsidiaries within the TECH segment in order to improve overall operational efficiencies, reduce costs, and provide potential for greater revenue growth (the "TECH Segment Combination").  The total expected costs related to one time termination benefits and other costs associated with the TECH Segment Combination are estimated to be approximately $13.3 million to $13.5 million. In connection with the TECH Segment Combination, the Company has incurred cumulative costs of approximately $13.3 million, consisting of one time termination benefits of approximately $3.5 million, approximately $3.4 million in costs to reduce inventory values for certain products to their expected net realizable amount, and facility exit and other costs of approximately $6.4 million.

The following table sets forth the changes to the liability for the TECH Segment Combination during the year ended December 31, 2013:

 
 
Severance
 
Other Costs
 
Total
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
Balance, December 31, 2012
 
$
0.4

 
$
2.5

 
$
2.9

Provision
 
2.1

 
5.1

 
7.2

Payments
 
(1.6
)
 
(6.7
)
 
(8.3
)
Other
 
—

 
(0.1
)
 
(0.1
)
Balance, December 31, 2013
 
$
0.9

 
$
0.8

 
$
1.7



Best Restructuring

In 2011, management approved a plan to reduce costs and improve production efficiencies at Best, one of the Company's RESV subsidiaries, including transferring certain operations from Italy to Poland (the "Best Restructuring"). The total expected costs related to contractual termination benefits and other costs associated with the Best Restructuring are estimated to be approximately $17.3 million. In connection with the Best Restructuring, the Company has incurred cumulative costs through December 31, 2013 of approximately $17.3 million, consisting of contractual termination benefits of approximately $16.9 million and other costs of approximately $0.4 million.

The following table sets forth the changes to the liability for the Best Restructuring during the year ended December 31, 2013:

 
 
Severance (1)
 
Other Costs
 
Total
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
Balance, December 31, 2012
 
$
9.1

 
$
—

 
$
9.1

Provision
 
(0.2
)
 
—

 
(0.2
)
Payments
 
(3.7
)
 
—

 
(3.7
)
Other
 
0.3

 
—

 
0.3

Balance, December 31, 2013
 
$
5.5

 
$
—

 
$
5.5


(1)
Remaining severance is expected to be paid in 2014.

Summary of Exit and Disposal Activities

The following table outlines amounts recorded within the consolidated statement of operations associated with the Company's exit and disposal activities for the years ended December 31, 2013, 2012 and 2011:

 
 
For the year ended December 31,
 
 
2013
 
2012
 
2011
 
 
SG&A
 
COGS
 
Total
 
SG&A
 
COGS
 
Total
 
SG&A
 
COGS
 
Total
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manufacturing Rationalization &
     Relocation Initiative
 
$
—

 
$
8.3

 
$
8.3

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Warehousing & Distribution
     Consolidation
 
0.1

 
1.7

 
1.8

 
—

 
—

 
—

 
—

 
—

 
—

TECH Segment Combination
 
5.3

 
1.9

 
7.2

 
3.7

 
2.4

 
6.1

 
—

 
—

 
—

Best Restructuring
 
—

 
(0.2
)
 
(0.2
)
 
—

 
1.8

 
1.8

 
1.3

 
14.4

 
15.7

Other
 
—

 
—

 
—

 
—

 
1.2

 
1.2

 
1.6

 
0.7

 
2.3

Total
 
$
5.4

 
$
11.7

 
$
17.1

 
$
3.7

 
$
5.4

 
$
9.1

 
$
2.9

 
$
15.1

 
$
18.0