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Realignment Programs (Tables)
6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following is a summary of total charges, net of adjustments, related to the Realignment Programs:
 
Three Months Ended June 30, 2018
 (Amounts in thousands)
EPD
 
IPD
 
FCD
 
Subtotal–Reportable Segments
 
Eliminations and All Other
 
Consolidated Total
Restructuring Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
4,492

 
$
1,335

 
$
706

 
$
6,533

 
$

 
$
6,533

     SG&A
328

 
836

 
116

 
1,280

 
28

 
1,308

 
$
4,820

 
$
2,171

 
$
822

 
$
7,813

 
$
28

 
$
7,841

Non-Restructuring Charges
 

 
 

 
 

 
 
 
 
 
 

     COS
$
7,276

 
$
2,000

 
$
420

 
$
9,696

 
$

 
$
9,696

     SG&A
1,389

 
305

 
524

 
2,218

 
986

 
3,204

 
$
8,665

 
$
2,305

 
$
944

 
$
11,914

 
$
986

 
$
12,900

Total Realignment Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
11,768

 
$
3,335

 
$
1,126

 
$
16,229

 
$

 
$
16,229

     SG&A
1,717

 
1,141

 
640

 
3,498

 
1,014

 
$
4,512

Total
$
13,485

 
$
4,476

 
$
1,766

 
$
19,727

 
$
1,014

 
$
20,741


 
Three Months Ended June 30, 2017
 (Amounts in thousands)
EPD
 
IPD
 
FCD
 
Subtotal–Reportable Segments
 
Eliminations and All Other
 
Consolidated Total
Restructuring Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
2,866

 
$
1,321

 
$
1,211

 
$
5,398

 
$

 
$
5,398

     SG&A
587

 
97

 
(778
)
 
(94
)
 
64

 
(30
)
 
$
3,453

 
$
1,418

 
$
433

 
$
5,304

 
$
64

 
$
5,368

Non-Restructuring Charges
 

 
 

 
 

 
 
 
 
 
 

     COS
$
4,071

 
$
2,377

 
$
2,268

 
$
8,716

 
$

 
$
8,716

     SG&A
6,710

 
6,768

 
2,752

 
16,230

 
1,391

 
17,621

 
$
10,781

 
$
9,145

 
$
5,020

 
$
24,946

 
$
1,391

 
$
26,337

Total Realignment Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
6,937

 
$
3,698

 
$
3,479

 
$
14,114

 
$

 
$
14,114

     SG&A
7,297

 
6,865

 
1,974

 
16,136

 
1,455

 
$
17,591

Total
$
14,234

 
$
10,563

 
$
5,453

 
$
30,250

 
$
1,455

 
$
31,705


 
Six Months Ended June 30, 2018
 (Amounts in thousands)
Engineered Product Division
 
Industrial Product Division
 
Flow Control Division
 
Subtotal–Reportable Segments
 
Eliminations and All Other
 
Consolidated Total
Restructuring Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
5,437

 
$
1,608

 
$
2,452

 
$
9,497

 
$

 
$
9,497

     SG&A
419

 
703

 
345

 
1,467

 
28

 
1,495

 
$
5,856

 
$
2,311

 
$
2,797

 
$
10,964

 
$
28

 
$
10,992

Non-Restructuring Charges
 

 
 

 
 

 
 
 
 
 
 

     COS
$
11,135

 
$
2,170

 
$
583

 
$
13,888

 
$

 
$
13,888

     SG&A
3,491

 
1,105

 
722

 
5,318

 
2,017

 
7,335

 
$
14,626

 
$
3,275

 
$
1,305

 
$
19,206

 
$
2,017

 
$
21,223

Total Realignment Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
16,572

 
$
3,778

 
$
3,035

 
$
23,385

 
$

 
$
23,385

     SG&A
3,910

 
1,808

 
1,067

 
6,785

 
2,045

 
8,830

Total
$
20,482

 
$
5,586

 
$
4,102

 
$
30,170

 
$
2,045

 
$
32,215



 
Six Months Ended June 30, 2017
 (Amounts in thousands)
Engineered Product Division
 
Industrial Product Division
 
Flow Control Division
 
Subtotal–Reportable Segments
 
Eliminations and All Other
 
Consolidated Total
Restructuring Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
192

 
$
6,093

 
$
1,179

 
$
7,464

 
$

 
$
7,464

     SG&A
(195
)
 
186

 
(653
)
 
(662
)
 
75

 
(587
)
 
$
(3
)
 
$
6,279

 
$
526

 
$
6,802

 
$
75

 
$
6,877

Non-Restructuring Charges
 

 
 

 
 

 
 
 
 
 
 

     COS
$
5,172

 
$
3,816

 
$
2,701

 
$
11,689

 
$

 
$
11,689

     SG&A
7,424

 
10,374

 
3,300

 
21,098

 
2,555

 
23,653

 
$
12,596

 
$
14,190

 
$
6,001

 
$
32,787

 
$
2,555

 
$
35,342

Total Realignment Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
5,364

 
$
9,909

 
$
3,880

 
$
19,153

 
$

 
$
19,153

     SG&A
7,229

 
10,560

 
2,647

 
20,436

 
2,630

 
23,066

Total
$
12,593

 
$
20,469

 
$
6,527

 
$
39,589

 
$
2,630

 
$
42,219


The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Programs:
 
Inception to Date
 (Amounts in thousands)
EPD
 
IPD (1)
 
FCD
 
Subtotal–Reportable Segments
 
Eliminations and All Other
 
Consolidated Total
Restructuring Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
48,249

 
$
49,433

 
$
25,107

 
$
122,789

 
$

 
$
122,789

     SG&A
18,759

 
17,420

 
9,442

 
45,621

 
307

 
45,928

     Income tax expense(2)
10,400

 
9,300

 
1,800

 
21,500

 

 
21,500

 
$
77,408

 
$
76,153

 
$
36,349

 
$
189,910

 
$
307

 
$
190,217

Non-Restructuring Charges
 

 
 

 
 

 
 
 
 
 
 

     COS
$
37,558

 
$
23,159

 
$
15,450

 
$
76,167

 
$
8

 
$
76,175

     SG&A
20,337

 
19,506

 
8,886

 
48,729

 
11,939

 
60,668

 
$
57,895

 
$
42,665

 
$
24,336

 
$
124,896

 
$
11,947

 
$
136,843

Total Realignment Charges
 
 
 
 
 
 
 
 
 
 
 
     COS
$
85,807

 
$
72,592

 
$
40,557

 
$
198,956

 
$
8

 
$
198,964

     SG&A
39,096

 
36,926

 
18,328

 
94,350

 
12,246

 
106,596

     Income tax expense(2)
10,400

 
9,300

 
1,800

 
21,500

 

 
21,500

Total
$
135,303

 
$
118,818

 
$
60,685

 
$
314,806

 
$
12,254

 
$
327,060


____________________________
(1) Includes $47.7 million of restructuring charges, primarily COS, related to the R1 Realignment Program.
(2) Income tax expense includes exit taxes as well as non-deductible costs.
Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges.
The following is a summary of restructuring charges, net of adjustments, for the Realignment Programs:
 
Three Months Ended June 30, 2018
 (Amounts in thousands)
Severance
 
Contract Termination
 
Asset Write-Downs
 
Other
 
Total
     COS
$
2,248

 
$

 
$
2,968

 
$
1,317

 
$
6,533

     SG&A
1,484

 

 

 
(176
)
 
1,308

Total
$
3,732

 
$

 
$
2,968

 
$
1,141

 
$
7,841

 
Three Months Ended June 30, 2017
 (Amounts in thousands)
Severance
 
Contract Termination
 
Asset Write-Downs
 
Other
 
Total
     COS
$
(462
)
 
$
88

 
$
198

 
$
5,574

 
$
5,398

     SG&A
(498
)
 

 
(161
)
 
629

 
(30
)
Total
$
(960
)
 
$
88

 
$
37

 
$
6,203

 
$
5,368


 
Six Months Ended June 30, 2018
 (Amounts in thousands)
Severance
 
Contract Termination
 
Asset Write-Downs
 
Other
 
Total
     COS
$
3,354

 
$

 
$
3,449

 
$
2,694

 
$
9,497

     SG&A
1,293

 

 

 
202

 
1,495

Total
$
4,647

 
$

 
$
3,449

 
$
2,896

 
$
10,992


 
Six Months Ended June 30, 2017
 (Amounts in thousands)
Severance
 
Contract Termination
 
Asset Write-Downs
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
     COS
$
(4,220
)
 
$
226

 
$
5,151

 
$
6,307

 
$
7,464

     SG&A
(1,817
)
 

 
191

 
1,039

 
(587
)
Total
$
(6,037
)
 
$
226

 
$
5,342

 
$
7,346

 
$
6,877


The following is a summary of total inception to date restructuring charges, net of adjustments, related to the Realignment Programs:
 
Inception to Date
 (Amounts in thousands)
Severance
 
Contract Termination
 
Asset Write-Downs
 
Other
 
Total
     COS(1)
$
85,539

 
$
902

 
$
18,766

 
$
17,582

 
$
122,789

     SG&A
31,163

 
43

 
1,677

 
13,045

 
45,928

     Income tax expense(2)

 

 

 
21,500

 
21,500

Total
$
116,702

 
$
945

 
$
20,443

 
$
52,127

 
$
190,217


_______________________________
(1) Includes $47.7 million of restructuring charges, primarily COS, related to the R1 Realignment Program.
(2) Income tax expense includes exit taxes as well as non-deductible costs.
Schedule of Restructuring Reserve by Type of Cost
The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the six months ended June 30, 2018 and 2017:
 
2018
 
2017
(Amounts in thousands)
R1 Realignment Program
 
R2 Realignment Program
 
Total
 
R1 Realignment Program
 
R2 Realignment Program
 
Total
Balance at December 31
$
2,005

 
$
37,225

 
$
39,230

 
$
12,594

 
$
47,733

 
$
60,327

Charges, net of adjustments
(363
)
 
7,907

 
7,544

 
(38
)
 
1,572

 
1,534

Cash expenditures
(106
)
 
(9,063
)
 
(9,169
)
 
(570
)
 
(16,949
)
 
(17,519
)
Other non-cash adjustments, including currency
(318
)
 
(2,060
)
 
(2,378
)
 
(30
)
 
(5,319
)
 
(5,349
)
Balance at June 30
$
1,218

 
$
34,009

 
$
35,227

 
$
11,956

 
$
27,037

 
$
38,993