Reorganization and Restructuring

2016 Reorganization and Restructuring

In the fourth quarter of 2016, management implemented restructuring actions across our global business operations and our corporate functions. As a result of these actions, we recognized $18.1 million in related 2016 costs. We recognized an additional $13.5 million in the first nine months of 2017 under this restructuring for additional costs related to severance, a benefit program termination, asset-related adjustments and lease terminations. Severance actions are expected to reduce our global workforce by 800 to 900 positions. We expect that the 2016 restructuring will result in $8 to $12 million in 2017 cost savings. We expect to incur additional costs between $10 and $14 million in future periods, primarily severance costs.

The following table summarizes the costs incurred, payments and utilization, and foreign currency exchange effects of the 2016 Reorganization and Restructuring:



(In millions)	Asset Related Adjustments			Severance Costs		Lease Terminations		Benefit Program Termination		Total

Balance as of January 1, 2017	$	—		7.0		0.6		—		7.6
Expense (benefit)	3.4			7.5		0.4		2.2		13.5
Payments and utilization	(3.4		)	(11.9	)	(0.4	)	(2.2	)	(17.9	)
Foreign currency exchange effects	—			0.2		—		—		0.2
Balance as of September 30, 2017	$	—		2.8		0.6		—		3.4

Executive Leadership and Board of Directors Restructuring

In the fourth quarter of 2015, we recognized $1.8 million in costs related to the restructuring of executive leadership and the Board of Directors, which was announced in January 2016. We also recognized an additional $4.3 million in charges, primarily severance costs, in the first nine months of 2016.

2015 Reorganization and Restructuring

Brink's initiated a global restructuring of its business in the third quarter of 2015. We recognized $11.6 million in related 2015 costs related to employee severance, contract terminations, and property impairment. We recognized an additional $5.3 million in the first nine months of 2016 related to this restructuring for additional severance costs, contract terminations and lease terminations. The 2015 Reorganization and Restructuring reduced the global workforce by approximately 1,100 positions and resulted in approximately $20 million in 2016 savings. The actions under this program were substantially completed by the end of 2016, with cumulative pretax charges of approximately $18 million.

Other Restructurings

Management continuously implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized related severance costs of $0.8 million in the third quarter of 2017 and $1.9 million in the first nine months of 2017. These restructuring actions are expected to reduce our workforce by 200 to 300 positions and result in $3 to $4 million in annualized cost savings. We expect to incur additional costs between $1 and $2 million in future periods, primarily severance costs. These estimates will be updated as management targets additional sections of our business.