RESTRUCTURING ACTIVITIES

9 Months Ended

Nov. 01, 2015

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

NOTE 9—RESTRUCTURING ACTIVITIES

As a result of the sale of the Power Solutions business unit, management evaluated the Company’s talent alignment and functional support strategies.  Consequently, the Company expects to take a $10 million to $20 million charge over the next twelve months and expects a payback via a permanent reduction in cost over the next two years. This charge reflects costs primarily for severance, relocation and related costs.  During the three and nine months ended November 1, 2015, the Company recorded $4 million of the expected charges, primarily related to severance and other employee-related costs at Facilities Maintenance and Waterworks.  Payments for these initial charges are expected to be substantially complete in the next twelve months.  As of November 1, 2015, the liability balances for these restructuring activities was $4 million and is included in Other current liabilities in the Consolidated Balance Sheets.