XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Restructuring and Other Charges, Net | 6 Months Ended
--- | ---
Jul. 03, 2016
Restructuring and Other Charges, Net |
Restructuring and Other Charges, Net | 6.Restructuring and Other Charges, Net The Company’s Board of Directors approves all major restructuring programs that involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the liability is incurred. These costs are included in restructuring and other charges in the Company’s consolidated statements of operations. A summary of the pre-tax cost by restructuring program is as follows:
|  | Second Quarter Ended |  | Six Months Ended |
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015 |
|  | (in millions) |
Restructuring costs: |  |  |  |  |  |  |  |  |
2015 Actions |  | $ | 0.8 |  | $ | 4.0 |  | $ | 1.8 |  | $ | 5.3 |
2013 Actions |  | — |  | — |  | — |  | 0.5 |
Other Actions |  | 2.4 |  | 0.7 |  | 2.8 |  | 0.9 |
Total restructuring and other charges, net |  | $ | 3.2 |  | $ | 4.7 |  | $ | 4.6 |  | $ | 6.7 |
The Company recorded pre-tax restructuring and other charges, net in its business segments as follows:
|  | Second Quarter Ended |  | Six Months Ended |
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015 |
|  | (in millions) |
Americas |  | $ | 0.8 |  | $ | 0.7 |  | $ | 1.6 |  | $ | 2.0 |
EMEA |  | 2.5 |  | 0.7 |  | 2.9 |  | 1.5 |
Asia-Pacific |  | — |  | 3.3 |  | 0.2 |  | 3.3 |
Corporate |  | (0.1 | ) | — |  | (0.1 | ) | (0.1 | )
Total |  | $ | 3.2 |  | $ | 4.7 |  | $ | 4.6 |  | $ | 6.7 |
2015 Actions In 2015, the Board of Directors of the Company approved a program relating to the transformation of the Company’s Americas and Asia-Pacific businesses. The first phase of the program primarily involved the exit of low-margin, non-core product lines and global sourcing actions. The Company eliminated approximately $165 million of combined Americas and Asia-Pacific net sales primarily within the Company’s do-it-yourself (DIY) distribution channel. As part of the rationalization exercise, the Company entered into an agreement to sell an operating subsidiary in China whose manufacturing facility was dedicated exclusively to the manufacturing of products being rationalized. The Company finalized the sale in the second quarter of 2016, and expects to receive approximately $9.0 million in proceeds during the third quarter of 2016. The second phase of the program involves reducing the square footage of the Company’s Americas facilities, which together with phase one, is expected to reduce the Americas net operating footprint by approximately 30%. The second phase is designed to improve the utilization of our remaining facilities, better leverage our cost structure, reduce working capital, and improve execution of customer delivery requirements. On a combined basis, the total estimated pre-tax cost for the Company’s transformation program related to its Americas and Asia-Pacific businesses is $63 million to $68 million, including restructuring costs of $20.4 million, goodwill and intangible asset impairments of $13.4 million and other transformation and deployment costs of $29 million to $34 million. The other transformation and deployment costs include consulting and project management fees, inventory write offs and other associated costs. Costs of the program are expected to be incurred through 2017. The following table summarizes by type, the total expected, incurred and remaining pre-tax restructuring costs for the Company’s transformation program related to its Americas and Asia-Pacific businesses:
|  | Severance |  | Legal and consultancy |  | Asset write-downs |  | Facility exit and other |  | Total |
|  | (in millions) |
Costs incurred—2015 |  | $ | 8.5 |  | $ | 0.7 |  | $ | 1.6 |  | $ | 2.8 |  | $ | 13.6 |
Costs incurred—first quarter 2016 |  | 0.2 |  | 0.2 |  | 0.2 |  | 0.4 |  | 1.0 |
Costs incurred—second quarter 2016 |  | 0.2 |  | — |  | 0.8 |  | (0.2 | ) | 0.8 |
Remaining costs to be incurred |  | 0.1 |  | 0.3 |  | 0.1 |  | 4.5 |  | 5.0 |
Total expected restructuring costs |  | $ | 9.0 |  | $ | 1.2 |  | $ | 2.7 |  | $ | 7.5 |  | $ | 20.4 |
The following table summarizes total incurred, incurred to date and expected pre-tax restructuring costs by business segment for the Company’s Americas and Asia-Pacific 2015 transformation program:
|  | Second Quarter Ended |  | Six Months Ended |  |  |  |  |  |  |
|  | July 3, 2016 |  | July 3, 2016 |  | Incurred to Date |  | Remaining costs |  | Total Expected Costs |
|  |  |  | (in millions) |  |  |  |  |  |  |
Asia-Pacific |  | $ | — |  | $ | 0.2 |  | $ | 4.4 |  | $ | — |  | $ | 4.4 |
Americas |  | 0.8 |  | 1.6 |  | 11.0 |  | 5.0 |  | 16.0 |
Total restructuring costs |  | $ | 0.8 |  | $ | 1.8 |  | $ | 15.4 |  | $ | 5.0 |  | $ | 20.4 |
Details of the restructuring reserve activity for the Company’s Americas and Asia-Pacific 2015 transformation program for the period ended July 3, 2016 are as follows:
|  | Severance |  | Legal and Consultancy |  | Asset write-downs |  | Facility exit and other |  | Total |
|  | (in millions) |
Balance at December 31, 2015 |  | $ | 5.0 |  | $ | 0.4 |  | $ | — |  | $ | 1.0 |  | $ | 6.4 |
Net pre-tax restructuring charges |  | 0.2 |  | 0.2 |  | 0.2 |  | 0.4 |  | 1.0 |
Utilization and foreign currency impact |  | (1.1 | ) | (0.6 | ) | (0.2 | ) | (0.4 | ) | (2.3 | )
Balance at April 3, 2016 |  | $ | 4.1 |  | $ | — |  | — |  | $ | 1.0 |  | $ | 5.1 |
Net pre-tax restructuring charges |  | 0.2 |  | — |  | 0.8 |  | (0.2 | ) | 0.8 |
Utilization and foreign currency impact |  | — |  | — |  | (0.8 | ) | (0.7 | ) | (1.5 | )
Balance at July 3, 2016 |  | $ | 4.3 |  | $ | — |  | $ | — |  | $ | 0.1 |  | $ | 4.4 |
Other Actions The Company also periodically initiates other actions which are not part of a major program. In the fourth quarters of 2015 and 2014, management initiated certain restructuring actions and strategic initiatives with respect to the Company’s EMEA segment in response to the ongoing economic challenges in Europe and additional product rationalization. The restructuring actions primarily include expected severance benefits and limited costs relating to asset write offs, professional fees and relocation. Total “Other Actions” pre-tax restructuring expense was $2.4 million and $2.8M for the three month and six month period ended July 3, 2016, respectively. Included in “Other Actions” is the 2014 and 2015 EMEA restructuring initiatives, in addition to other minor initiatives for which the Company incurred restructuring expense of $0.8 million for both the three and six month period ended July 3, 2016. The total pre-tax charge for the EMEA 2015 restructuring initiatives is expected to be approximately $10 million, of which approximately $8.5 million was incurred as of July 3, 2016 for the program to date. The remaining expected costs relate to severance, legal and relocation costs and are expected to be completed by the end of the fourth quarter of 2016. The total pre-tax charge for the EMEA 2014 restructuring initiatives is expected to be approximately $8 million, of which approximately $6.8 million was incurred as of July 3, 2016 for the program to date. The remaining costs relate to severance, asset write-offs and relocation costs and are expected to be completed by the end of the fourth quarter of 2016. The following table summarizes total expected, incurred and remaining pre-tax restructuring costs for the EMEA 2015 restructuring actions:
|  | Severance |  | Legal and consultancy |  | Facility exit and other |  | Total |
|  | (in millions) |
Costs incurred—2015 |  | 6.6 |  | — |  | 0.3 |  | 6.9 |
Costs incurred—first quarter 2016 |  | 0.1 |  | — |  | — |  | 0.1 |
Costs incurred—second quarter 2016 |  | 1.3 |  | 0.2 |  | — |  | 1.5 |
Remaining costs to be incurred |  | 0.5 |  | 1.0 |  | — |  | 1.5 |
Total expected restructuring costs |  | 8.5 |  | 1.2 |  | 0.3 |  | 10.0 |
Details of the Company’s EMEA 2015 restructuring reserve activity for the period ended July 3, 2016 are as follows:
|  | Severance |  | Legal and consultancy |  | Facility exit and other |  | Total |
Balance at December 31, 2015 |  | $ | 6.4 |  | $ | — |  | $ | — |  | $ | 6.4 |
Net pre-tax restructuring charges |  | 0.1 |  | — |  | — |  | 0.1 |
Utilization and foreign currency impact |  | (0.2 | ) | — |  | — |  | (0.2 | )
Balance at April 3, 2016 |  | $ | 6.3 |  | — |  | — |  | 6.3 |
Net pre-tax restructuring charges |  | $ | 1.3 |  | 0.2 |  | — |  | 1.5 |
Utilization and foreign currency impact |  | (0.8 | ) | (0.2 | ) | — |  | (1.0 | )
Balance at July 3, 2016 |  | $ | 6.8 |  | $ | — |  | $ | — |  | $ | 6.8 |
The following table summarizes total expected, incurred and remaining pre-tax restructuring costs for the EMEA 2014 restructuring actions:
|  | Severance |  | Legal and consultancy |  | Asset write-downs |  | Facility exit and other |  | Total |
|  | (in millions) |
Costs incurred—2014 |  | $ | 6.9 |  | $ | — |  | $ | — |  | $ | — |  | $ | 6.9 |
Costs incurred—2015 |  | (1.0 | ) | 0.2 |  | 0.3 |  | — |  | (0.5 | )
Costs incurred—first quarter 2016 |  | 0.2 |  | — |  | 0.1 |  | — |  | 0.3 |
Costs incurred—second quarter 2016 |  | — |  | — |  | 0.1 |  | — |  | 0.1 |
Remaining costs to be incurred |  | 0.6 |  | — |  | 0.5 |  | 0.1 |  | 1.2 |
Total expected restructuring costs |  | 6.7 |  | 0.2 |  | 1.0 |  | 0.1 |  | 8.0 |
Details of the Company’s EMEA 2014 restructuring reserve activity for the six months ended July 3, 2016 are as follows:
|  | Severance |  | Legal and consultancy |  | Asset write-downs |  | Total |
|  | (in millions) |
Balance at December 31, 2015 |  | $ | 2.6 |  | $ | — |  | $ | — |  | $ | 2.6 |
Net pre-tax restructuring charges |  | 0.2 |  |  |  | 0.1 |  | 0.3 |
Utilization and foreign currency impact |  | (0.9 | ) |  |  | (0.1 | ) | (1.0 | )
Balance at April 3, 2016 |  | $ | 1.9 |  | $ | — |  | $ | — |  | $ | 1.9 |
Net pre-tax restructuring charges |  | — |  | — |  | 0.1 |  | 0.1 |
Utilization and foreign currency impact |  | (0.7 | ) | — |  | (0.1 | ) | (0.8 | )
Balance at July 3, 2016 |  | $ | 1.2 |  | $ | — |  | $ | — |  | $ | 1.2 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration