XML 93 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
Restructuring Activities
 12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
9. Restructuring Activities

From time to time, the Company will initiate various restructuring programs and incur severance and other restructuring costs. The following table details restructuring charges incurred by segment for the periods presented:
 
Years Ended December 31,
 
2014
 
2013
 
2012
Energy (1)
$
7,549

 
$
(811
)
 
$
584

Engineered Systems
6,624

 
3,628

 
8,320

Fluids
3,784

 
850

 
2,215

Refrigeration & Food Equipment
24,897

 
5,451

 
2,761

Corporate
1,954

 
—

 
—

Total
$
44,808

 
$
9,118

 
$
13,880

 
 
 
 
 
 
These amounts are classified in the Consolidated Statements of Earnings as follows:
 
 
 
 
 
 
Cost of goods and services
$
19,690

 
$
5,320

 
$
3,613

Selling and administrative expenses
25,118

 
3,798

 
10,267

Total
$
44,808

 
$
9,118

 
$
13,880


(1)
In 2013, restructuring charges incurred within the Energy segment included a net gain on the sale of buildings in connection with facility consolidations.

The restructuring charges of $44,808 incurred in 2014 relate to restructuring programs initiated during 2014 and 2013. These programs are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. The Company expects to incur restructuring charges of approximately $17.0 million to $20.0 million in the first quarter of 2015, with the majority of these charges in the Energy segment. We expect to fund the remainder of the 2014 programs currently underway, as well those commenced in 2015, over the next 12 to 18 months. In light of the economic uncertainty in certain of our end markets and our continued focus on improving our operating efficiency, it is possible that additional programs may be implemented throughout the remainder of 2015.

The $44,808 of restructuring charges incurred during 2014 included the programs as described below.

•
The Energy segment incurred restructuring charges of $7,549, related principally to a facility consolidation in its businesses serving the compression markets and reduction in workforce.

•
The Engineered Systems segment recorded $6,624 of restructuring charges relating to facility consolidations within both the Printing & Identification and Industrials platforms, as well as actions taken to optimize costs related to engineering, sales, and administrative functions within the Printing & Identification platform.

•
The Fluids segment recorded $3,784 of restructuring charges principally related to reduction in workforce for those businesses serving the Pumps markets.

•
The Refrigeration & Food Equipment segment recorded restructuring charges of $24,897, primarily related to headcount reductions and exit plans at targeted facilities, including approximately $17.5 million related to the closure of a European-based facility within Refrigeration.

•
Corporate recorded restructuring charges of $1,954, primarily severance expense, resulting from the Company's decision to realign its businesses into a new segment structure in the first quarter of 2014 following the spin-off of Knowles.

Restructuring expenses incurred in 2013 and 2012 also included targeted facility consolidations at certain businesses.

The following table details the Company’s severance and other restructuring accrual activity:
 
Severance
 
Exit
 
Total
Balance at December 31, 2011
$
1,654

 
3,110

 
$
4,764

Restructuring charges
10,583

 
3,297

 
13,880

Payments
(9,554
)
 
(3,916
)
 
(13,470
)
Other, including foreign currency
4

 
74

 
78

Balance at December 31, 2012
2,687

 
2,565

 
5,252

Restructuring charges
7,103

 
2,015

 
9,118

Payments
(7,001
)
 
(2,451
)
 
(9,452
)
Other, including foreign currency
87

 
337

 
424

Balance at December 31, 2013
2,876

 
2,466

 
5,342

Restructuring charges
23,532

 
21,276

 
44,808

Payments
(10,092
)
 
(5,750
)
 
(15,842
)
Other, including foreign currency
(958
)
 
(11,329
)
(1) 
(12,287
)
Balance at December 31, 2014
$
15,358

 
$
6,663

 
$
22,021


(1) 
Other activity in exit reserves primarily represents the non-cash write-off of inventory and fixed assets in connection with certain facility closures.

The accrual balances at December 31, 2014 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods.