Note 6:

Restructuring Activities

During the third quarter of fiscal 2018, the Company ceased production at its Gailtal, Austria manufacturing facility, primarily to reduce excess capacity and lower manufacturing costs in Europe. As a result of this facility closure, the Company recorded $8.2 million of restructuring expenses, within the CIS segment, during the third quarter of fiscal 2018. These restructuring expenses primarily related to employee severance and related benefits. Also in the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge to reduce the carrying value of the Austrian facility to its estimated fair value, less costs to sell.

The Company’s restructuring actions during the first nine months of fiscal 2018 also included plant consolidation activities in the Americas segment and targeted headcount reductions in the Americas and Europe segments. In addition, the Company transferred production of certain product lines to Hungary from other manufacturing facilities within the Europe segment, primarily to expand its low-cost country footprint in Europe and to ensure continued competitiveness in the region.

The Company’s restructuring actions during the first nine months of fiscal 2017 primarily consisted of plant consolidation activities and targeted headcount reductions in the Americas segment.

Restructuring and repositioning expenses were as follows:

	Three months ended December 31,				Nine months ended December 31,
	2017		2016		2017		2016
Employee severance and related benefits	$	8.6	$	0.1	$	9.2	$	2.2
Other restructuring and repositioning expenses		0.8		1.5		2.3		3.8
Total	$	9.4	$	1.6	$	11.5	$	6.0

Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:

	Three months ended December 31,
	2017			2016
Beginning balance	$	3.0		$	9.2
Additions		8.6			0.1
Payments		(0.6	)		(1.3	)
Effect of exchange rate changes		0.2			(0.5	)
Ending balance	$	11.2		$	7.5

	Nine months ended December 31,
	2017			2016
Beginning balance	$	6.5		$	14.7
Additions		9.2			2.2
Payments		(5.1	)		(8.5	)
Effect of exchange rate changes		0.6			(0.9	)
Ending balance	$	11.2		$	7.5

During the second quarter of fiscal 2017, the Company sold a manufacturing facility in its Europe segment for cash proceeds of $4.3 million and recognized a gain of $1.2 million as a result.