Restructuring Activities

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities Disclosure

8. Restructuring Activities

The following table details restructuring charges incurred by segment for the periods presented:



	Three Months Ended March 31,
	2015			2014
Energy	$	17,822		$	71
Engineered Systems	4,355			1,785
Fluids	2,097			905
Refrigeration & Food Equipment	(282		)	—
Corporate	111			509
Total	$	24,103		$	3,270

These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows:

Cost of goods and services	$	7,454		$	543
Selling and administrative expenses	16,649			2,727
Total	$	24,103		$	3,270

The restructuring expenses of $24,103 incurred in the three months ended March 31, 2015 related to restructuring programs initiated during 2015 and 2014. 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 currently expects full year 2015 restructuring expenses of approximately $36.0 million to $43.0 million, inclusive of first quarter actions, principally within the Energy segment. The Company expects the programs currently underway to be substantially completed in the next twelve to eighteen months.

The $24,103 of restructuring charges incurred during the first quarter of 2015 included the following items:


•	The Energy segment incurred restructuring charges of $17,822 related to various programs across the segment focused on workforce reductions and facility consolidations. These programs were initiated to better align cost base with the anticipated demand environment in 2015.


•	The Engineered Systems segment recorded $4,355 of restructuring charges relating to headcount reductions across various businesses, well as actions taken to optimize costs related to administrative functions within the Printing & Identification platform.


•	The Fluids segment recorded $2,097 of restructuring charges principally related to headcount reductions at various businesses across the segment.


•	The Refrigeration & Food Equipment segment recorded reversals of certain prior year restructuring reserves of $282, primarily related to the fourth quarter 2014 closure of a European-based facility within Refrigeration, as the related costs were lower than anticipated.

The following table details the Company’s severance and other restructuring accrual activity:



	Severance			Exit			Total
Balance at December 31, 2014	$	15,358		$	6,663		$	22,021
Restructuring charges	13,354			10,749			24,103
Payments	(17,947		)	(4,540		)	(22,487		)
Other, including foreign currency	(532		)	(4,465		)	(4,997		)
Balance at March 31, 2015	$	10,233		$	8,407		$	18,640

The accrual balance at March 31, 2015 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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