Restructuring Charges

9 Months Ended

Oct. 01, 2016

Restructuring Charges

Restructuring Charges

A summary of the restructuring reserve activity from January 2, 2016 to October 1, 2016 is as follows:

(Millions of Dollars)	January 2, 2016		Net Additions		Usage			Currency		October 1, 2016
Severance and related costs	$	44.3	$	18.1	$	(39.7	)	$	0.4	$	23.1
Facility closures and asset impairments	14.4		9.2		(19.1		)	—		4.5
Total	$	58.7	$	27.3	$	(58.8	)	$	0.4	$	27.6

For the nine months ended October 1, 2016, the Company recognized net restructuring charges of $27.3 million. This amount reflects $18.1 million of net severance charges associated with the reduction of approximately 872 employees. The Company also had $4.8 million of facility closure costs and $4.4 million of asset impairments.

For the three months ended October 1, 2016, the Company recognized net restructuring charges of $9.1 million. This amount reflects $8.4 million of net severance charges associated with the reduction of approximately 270 employees. The Company also had $0.6 million of facility closure costs and $0.1 million of asset impairments.

The majority of the $27.6 million of reserves remaining as of October 1, 2016 is expected to be utilized within the next 12 months.

Segments: The $27 million net restructuring charge for the nine months ended October 1, 2016 includes: $3 million of net charges pertaining to the Tools & Storage segment; $12 million of net charges pertaining to the Security segment; $6 million of net charges pertaining to the Industrial segment; and $6 million of net charges pertaining to Corporate.

The $9 million net restructuring charge for the three months ended October 1, 2016 includes: $2 million of net charges pertaining to the Tools & Storage segment; $4 million of net charges pertaining to the Security segment; $2 million of net charges pertaining to the Industrial segment; and $1 million of net charges pertaining to Corporate.