Note 5:

Restructuring Activities

During 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 $8.3 million of restructuring expenses, within the CIS segment, during fiscal 2018. These restructuring expenses primarily related to employee severance and related benefits. The Company also recorded a $1.3 million asset impairment charge to reduce the carrying value of the Gailtal, Austria facility to its estimated fair value, less costs to sell.

The Company’s restructuring actions during fiscal 2018 also included targeted headcount reductions in the Europe and Americas segments, plant consolidation activities in the Americas segment, and costs resulting from the transfer of production of certain product lines to Hungary from other manufacturing facilities within the Europe segment. The Company’s objective for the product line transfers to Hungary was primarily to expand its low-cost country footprint in Europe and to ensure continued competitiveness in the region. In addition, the Company recorded restructuring costs associated with the discontinuance of its geothermal product line within its BHVAC segment.

During fiscal 2017, the Company completed a voluntary retirement program for certain U.S. salaried employees and implemented targeted headcount reductions at several locations, both in support of its objective to reduce operational and SG&A cost structures.

During fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility and recorded severance costs as a result. The Company completed the transfer of production from Washington to other Americas segment manufacturing facilities in fiscal 2017. Also during fiscal 2016, the Company completed the transfer of production from its McHenry, Illinois manufacturing facility to other Americas segment manufacturing facilities. These restructuring activities reflect the Company’s focus on operating scale manufacturing facilities to improve overall competitiveness and profitability.

Restructuring and repositioning expenses were as follows:

	Years ended March 31,
	2018		2017		2016
Employee severance and related benefits	$	13.0	$	5.3	$	12.8
Other restructuring and repositioning expenses		3.0		5.6		3.8
Total	$	16.0	$	10.9	$	16.6

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:

	Years ended March 31,
	2018			2017
Beginning balance	$	6.5		$	14.7
Additions		13.0			5.3
Payments		(9.4	)		(12.9	)
Effect of exchange rate changes		0.9			(0.6	)
Ending balance	$	11.0		$	6.5

During fiscal 2017, the Company sold two previously-closed manufacturing facilities within its Americas segment and a facility within its Europe segment, for cash proceeds totaling $5.4 million. As a result of the facility sales, the Company recorded net gains totaling $2.0 million.

During fiscal 2016, the Company recorded an asset impairment charge of $9.9 million within its Europe segment to write down long-lived assets at a manufacturing facility in Germany to fair value.