Restructuring Activities

9 Months Ended

Sep. 30, 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 September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018
Engineered Systems	$	852	$	10,637	$	3,730	$	13,872
Fluids	1,732		10,473		5,128		16,021
Refrigeration & Food Equipment	495		452		2,134		598
Corporate	257		2,639		1,018		5,932
Total	$	3,336	$	24,201	$	12,010	$	36,423

These amounts are classified in the Condensed Consolidated Statements of Earnings as follows:
Cost of goods and services	$	2,073	$	3,586	$	4,435	$	7,985
Selling, general and administrative expenses	1,263		20,615		7,575		28,438
Total	$	3,336	$	24,201	$	12,010	$	36,423

The restructuring expenses of $3,336 and $12,010 incurred during the three and nine months ended September 30, 2019, respectively, were primarily related to two significant rightsizing restructuring programs initiated in 2018 comprised principally 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 $9 million related to the selling, general and administrative expense reduction initiatives, $7 million of which was incurred during the nine months ended September 30, 2019 and $2 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, $4 million of which was incurred during the nine months ended September 30, 2019 and $6 million of which the Company expects to incur in the remainder of 2019 through 2020. Additional programs, beyond the scope of the announced programs, are expected to be implemented during 2019 with related restructuring charges.

The $3,336 of restructuring charges incurred during the third quarter of 2019 primarily included the following items:

•The Engineered Systems segment recorded $852 of restructuring charges related to programs focused on headcount reductions and facility restructuring costs.

•The Fluids segment recorded $1,732 of restructuring charges principally related to headcount reductions.

•The Refrigeration and Food Equipment segment recorded $495 of restructuring expense primarily due to headcount reductions and facility restructuring costs.

•Corporate recorded $257 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	8,695		3,315			12,010
Payments	(23,583)		(2,336)			(25,919)


Other, including foreign currency translation	(644)		(2,567)		⁽¹⁾	(3,211)
Balance at September 30, 2019	$	8,752	$	2,292		$	11,044

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