RESTRUCTURING ACTIVITIES

3 Months Ended

May. 01, 2016

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

NOTE 8 — RESTRUCTURING ACTIVITIES

During the fourth quarter of fiscal 2015 in conjunction with the sale of the Power Solutions business unit, management evaluated the Company’s talent alignment and functional support strategies. Consequently, during fiscal 2015, the Company initiated a restructuring plan to strategically align its leadership and functional support teams. Initially, the Company expected to incur approximately $10 million to $20 million of restructuring charges under the plan.  During first quarter fiscal 2016, the Company accelerated and expanded the restructuring plan. As a result, the Company now expects to incur a total of approximately $25 million to $30 million of restructuring charges under the restructuring plan, which we expect to complete in the second half of fiscal 2016 and deliver a payback of approximately two years via a reduction in costs.

During the three months ended May 1, 2016, the Company’s activities under this restructuring plan resulted in a restructuring charge of $7 million, $6 million of which was incurred at the Facilities Maintenance business. During fiscal 2015, the Company incurred $9 million of restructuring charges under this plan. The Company expects to incur an additional $9 million to $14 million of restructuring charges over the next six months primarily for severance, relocation and related costs.

The following table presents the activity for the liability balance, included in Other current liabilities in the Consolidated Balance Sheets (amounts in millions):

	Severance			Relocation & Other Costs			Total
Balance—January 31, 2016	$	6		$	1		$	7
Charges	3			4			7
Cash payments	(3		)	(4		)	(7		)
Balance—May 1, 2016	$	6		$	1		$	7