Restructuring Activities

9 Months Ended

Oct. 03, 2015

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

Beginning in 2013, the Company announced the closure of several of its manufacturing and warehouse facilities and consolidation into existing facilities to simplify manufacturing operations in its Commercial and Industrial Systems, Climate Solutions and Power Transmission segments. As a result of these closures, the Company incurred expenses including employee termination and plant relocation costs. The employee termination expenses are accrued over the employees remaining service period while the plant relocation costs are expensed as incurred.

The following is a reconciliation of provisions and payments for the restructuring projects for the three and nine months ended October 3, 2015 and September 27, 2014, respectively (in millions):



	Three Months Ended						Nine Months Ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Beginning balance	$	3.2		$	7.3		$	6.1		$	3.9
Provision	1.2			3.0			4.6			10.8
Less: Payments	(2.3		)	(1.8		)	(8.6		)	(6.2		)
Ending Balance	$	2.1		$	8.5		$	2.1		$	8.5

The following is a reconciliation of expenses by type for the restructuring projects for the three and nine months ended October 3, 2015 and September 27, 2014, respectively (in millions):



	Three Months Ended				Nine Months Ended
	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Employee termination expenses	$	—	$	1.8	$	0.1	$	5.2
Facility related costs	0.2		0.8		0.7		3.7
Other expenses	1.0		0.4		3.8		1.9
Total restructuring expenses	$	1.2	$	3.0	$	4.6	$	10.8

For the three months ended October 3, 2015 and September 27, 2014, restructuring charges recorded in Cost of Sales were $1.2 million and $3.0 million, respectively. For the nine months ended October 3, 2015 and September 27, 2014, restructuring charges recorded in Cost of Sales were $3.5 million and $10.5 million respectively. There were no restructuring charges recorded in Operating Expenses for the three months ended October 3, 2015 or September 27, 2014. For the nine months ended October 3, 2015 and September 27, 2014, restructuring charges recorded in Operating Expenses were $1.1 million and $0.3 million, respectively.

The Company's current restructuring activities are expected to conclude by the end of 2016. The Company expects to record aggregate future charges relating to previously announced restructuring activities of approximately $12.2 million which includes $6.4 million of employee termination expenses and $5.8 million of facility related and other costs.