Restructuring and other strategic initiatives (Tables)

6 Months Ended

Jun. 27, 2020

Restructuring and Related Activities [Abstract]

Schedule of restructuring costs

Overall costs associated with our restructuring and other strategic initiatives have been recognized in the condensed consolidated statements as set forth below. Expenses incurred in relation to certain of these actions qualify as restructuring expenses under U.S. GAAP.

	Three months ended				Six months ended
(dollars in millions)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Restructuring expenses:
—Severance expenses	$	13.6	$	0.3	$	13.8	$	2.9
—Consulting expenses	0.7		0.7		0.9		1.3
—Other restructuring expenses	2.9		(0.7)		4.4		(0.6)
	17.2		0.3		19.1		3.6
Restructuring expenses in asset impairments:
—Impairment of fixed assets	3.7		—		3.7		—
Restructuring expenses in cost of sales:
—Impairment of inventory	1.4		0.3		1.4		0.3
Total restructuring expenses	$	22.3	$	0.6	$	24.2	$	3.9
Expenses related to other strategic initiatives:
—Severance expenses included in cost of sales	$	0.5	$	0.5	$	0.6	$	0.5
—Severance expenses included in SG&A	0.3		1.4		0.8		1.2
Total expenses related to other strategic initiatives	$	0.8	$	1.9	$	1.4	$	1.7

These expenses include the impairment of inventory, which is recognized in cost of sales. Analyzed by segment, our restructuring expenses were as follows:

	Three months ended				Six months ended
(dollars in millions)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Power Transmission	$	19.8	$	0.3	$	20.0	$	3.2
Fluid Power	2.5		0.3		4.2		0.7
Continuing operations	$	22.3	$	0.6	$	24.2	$	3.9

Schedule of restructuring reserves activity

The following summarizes the reserve for restructuring expenses for the six months ended June 27, 2020 and June 29, 2019, respectively:

	Six months ended
(dollars in millions)	June 27, 2020		June 29, 2019
Balance as of the beginning of the period	$	2.9	$	2.6
Utilized during the period	(4.9)		(5.0)
Net charge for the period	19.6		3.6
Released during the period	(0.5)		—
Foreign currency translation	0.1		—
Balance as of the end of the period	$	17.2	$	1.2