Restructuring

November 2015 restructuring program

In the fourth quarter of 2015, the Company committed to a new strategic roadmap focused on growth and optimization of the portfolio, developing leading cost and efficiency positions, growth through innovation and cultivation of a high-performance culture. In 2017, the Company approved additional expenditures to further expand, strengthen and accelerate the Company's program targeting operational effectiveness and efficiencies.

Total expected costs and costs incurred to date by reportable segment are below (in millions):



	North America		Europe		Latin America		Total
Total expected restructuring costs	$	75.0	$	24.0	$	6.0	$	105.0
Costs incurred 2016 - Cost of sales	$	0.4	$	1.9	$	0.1	$	2.4
Costs incurred 2016 - SG&A	3.6		0.8		—		4.4
Total costs incurred, April 1, 2016	$	4.0	$	2.7	$	0.1	$	6.8
Costs incurred 2017 - Cost of sales	$	1.8	$	0.4	$	0.3	$	2.5
Costs incurred 2017 - SG&A	10.1		1.2		—		11.3
Total costs incurred, March 31, 2017	$	11.9	$	1.6	$	0.3	$	13.8
Total aggregate costs to date	$	60.7	$	22.0	$	5.5	$	88.2
Estimated remaining costs	$	14.3	$	2.0	$	0.5	$	16.8

Changes in the restructuring reserve and activity for the three months ended March 31, 2017 are below (in millions):



	Employee Separation Costs			Asset-Related Costs		Other Costs			Total
Total expected restructuring charges	$	17.0		$	25.0	$	63.0		$	105.0
Balance, December 31, 2016	$	5.9		$	—	$	13.3		$	19.2
Net provisions	2.5			—		11.3			13.8
Net benefits charged against the assets	—			—		(0.2		)	(0.2		)
Payments	(3.8		)	—		(17.7		)	(21.5		)
Foreign currency translation	—			—		0.1			0.1
Balance, March 31, 2017	$	4.6		$	—	$	6.8		$	11.4
Total aggregate costs to date	$	15.2		$	21.3	$	51.7		$	88.2

Employee Separation Costs

The Company recorded employee separation costs of $2.5 million and $1.3 million for the three months ended March 31, 2017 and April 1, 2016, respectively. The employee separation charges for the three months ended March 31, 2017 and April 1, 2016 were $0.9 million and $0.5 million in North America and $1.6 million and $0.8 million in Europe, respectively.

Employee separation costs include severance and retention bonuses. As of March 31, 2017, employee separation costs included severance charges for approximately 390 employees; approximately 280 of these employees were classified as manufacturing employees and approximately 110 of these employees were classified as non-manufacturing employees. The charges relate to involuntary separations based on current salary levels and past service periods and are either considered one-time employee termination benefits in accordance with ASC 420 - Exit or Disposal Cost Obligations ("ASC 420") or charges for contractual termination benefits under ASC 712 - Compensation - Nonretirement Postemployment Benefits ("ASC 712").

Asset-Related Costs

The Company did not record asset-related costs for the three months ended March 31, 2017 and recorded asset-related costs of $0.1 million in Latin America for the three months ended April 1, 2016.

Asset-related costs consist of asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets to be classified as held-for-sale or to be disposed of, as well as asset impairment charges for asset groups to be held-and-used in locations which are being restructured and it has been determined the undiscounted cash flows expected to result from the use and eventual disposition of the assets are less than their carrying value.

The Company notes the plan to abandon a long-lived asset before the end of its previously estimated useful life is a change in accounting estimate per ASC 250 - Accounting Changes and Error Corrections. The annual depreciation impact from the asset write-downs and changes in estimated useful lives is not material.

Other Costs

The Company recorded other restructuring-type charges of $11.3 million and $5.4 million for the three months ended March 31, 2017 and April 1, 2016, respectively. The other restructuring-type charges were $11.0 million and $3.5 million in North America for the three months ended March 31, 2017 and April 1, 2016, respectively, $1.9 million in Europe for the three months ended April 1, 2016 and $0.3 million in Latin America for the three months ended March 31, 2017.

Other restructuring-type charges are incurred as a direct result of the restructuring program. These restructuring-type charges primarily include project management costs, such as consulting fees related to the supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes, as well as working capital write-downs not associated with normal operations, equipment relocation, termination of contracts and other immaterial costs.

July 2014 restructuring program

In July 2014, the Company announced a comprehensive restructuring program. As of March 31, 2017, this program is substantially complete and future estimated costs are expected to be immaterial. The restructuring program was focused on the closure of certain underperforming assets as well as the consolidation and realignment of other facilities. The Company also implemented initiatives to reduce SG&A expenses globally. Total aggregate costs incurred as part of the program were approximately $220 million and the remaining restructuring reserve at March 31, 2017 is not material.