Restructuring Activities

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

10. Restructuring Activities

The Company's restructuring charges by segment were as follows:

	Three Months Ended March 31,
	2019		2018
Engineered Systems	$	370	$	1,375
Fluids	1,119		2,051
Refrigeration & Food Equipment	1,412		45
Corporate	35		749
Total	$	2,936	$	4,220
These amounts are classified in the Condensed Consolidated Statements of Earnings as follows:
Cost of goods and services	$	1,179	$	2,339
Selling, general and administrative expenses	1,757		1,881
Total	$	2,936	$	4,220

The restructuring expenses of $2,936 incurred during the three months ended March 31, 2019 were related to two significant rightsizing restructuring programs initiated in 2018 comprised primarily of broad-based selling, general and administrative expense reduction and footprint consolidation initiatives designed to increase operating margin, enhance operations and position the Company for sustained growth and investment.

In 2019, the Company expects to incur charges of approximately $5 million related to the selling, general and administrative expense reduction initiative, $2 million of which was incurred during the three months ended March 31, 2019 and $3 million  of which the Company expects to incur during the remainder of 2019. In 2019 and 2020, the Company expects to incur total restructuring charges of approximately $10 million related to footprint consolidation initiatives, $1 million of which was incurred during the three months ended March 31, 2019 and $9 million of which the Company expects to incur in the second quarter of 2019 through 2020. Additional programs, beyond the scope of the announced programs, may be implemented during 2019 with related restructuring charges.

The $2,936 of restructuring charges incurred during the first quarter of 2019 primarily included the following items:

•The Engineered Systems segment recorded $370 of restructuring charges related to programs focused on headcount reduction.  

•The Fluids segment recorded $1,119 of restructuring charges principally related to headcount reductions and facility restructuring costs. 

•The Refrigeration and Food Equipment segment recorded $1,412 of restructuring expense primarily due to headcount reductions and facility restructuring costs.

•Corporate recorded $35 of restructuring charges primarily related to headcount reductions.

The Company’s severance and exit accrual activities were as follows:

	Severance		Exit		Total
Balance at December 31, 2018	$	24,284	$	3,880	$	28,164
Restructuring charges	1,941		995		2,936
Payments	(10,776)		(424)		(11,200)
Other, including foreign currency translation	(754)		(915)		(1,669)
Balance at March 31, 2019	$	14,695	$	3,536	$	18,231