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Restructuring and Other Charges, Net | 12 Months Ended
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Dec. 31, 2018
Restructuring and Other Charges, Net |
Restructuring and Other Charges, Net | (3) Restructuring and Other Charges, Net The Company’s Board of Directors approves all major restructuring programs that may 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 charges in the Company’s consolidated statements of operations. A summary of the pre‑tax cost by restructuring program is as follows:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | (in millions)
Restructuring costs: |  |  |  |  |  |  |  |  |
2015 Actions |  | $ | — |  | $ | 2.4 |  | $ | 2.1
Other Actions |  |  | 3.4 |  |  | 4.4 |  |  | 2.6
Total restructuring charges |  | $ | 3.4 |  | $ | 6.8 |  | $ | 4.7
The Company recorded pre‑tax restructuring in its business segments as follows:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | (in millions)
Americas |  | $ | — |  | $ | 3.1 |  | $ | 1.6
Europe |  |  | 3.4 |  |  | 3.3 |  |  | 3.4
APMEA |  |  | — |  |  | 0.4 |  |  | 0.2
Corporate |  |  | — |  |  | — |  |  | (0.5)
Total |  | $ | 3.4 |  | $ | 6.8 |  | $ | 4.7
Other Actions The Company periodically initiates other actions which are not part of a major program. Total “Other Actions” pre-tax restructuring expense was $3.4 million for the year ended December 31, 2018. Included in “Other Actions” are European restructuring activities initiated in 2018 and 2017, as well as certain other minor initiatives, for which the Company incurred restructuring expenses or adjusted prior restructuring reserves in the year ended December 31, 2018. In the third quarter of 2018, management initiated restructuring actions primarily associated with the European headquarters as well as cost savings initiatives at certain European manufacturing facilities. These actions included reductions in force and other related costs within the Company’s Europe segment. The pre-tax charges for the year ended December 31, 2018 were approximately $4.0 million and primarily included severance benefits. The total restructuring charges associated with the program are estimated to be approximately $5.0 million with costs expected to be fully incurred within the year ending December 31, 2019. The restructuring reserve associated with these actions is approximately $2.2 million as of December 31, 2018, and primarily relates to severance benefits. In the fourth quarter of 2017, management initiated certain restructuring actions related to reductions in force within the Company’s Europe segment. The restructuring activities primarily included severance benefits. The total pre-tax charges associated with the Europe restructuring activities were initially expected to be approximately $4.1 million with costs being fully incurred in 2017. The company reduced its total pre-tax charges for the program to approximately $3.4 million as of September 30, 2018, primarily related to reduced severance costs. The restructuring reserve associated with these actions is approximately $0.2 million as of December 31, 2018, and relates to severance benefits. In the fourth quarter of 2015, management initiated certain restructuring actions and strategic initiatives with respect to the Company’s Europe segment in response to the ongoing economic challenges in Europe and additional product rationalization. The restructuring actions included severance benefits and limited costs relating to asset write-offs, professional fees and relocation. The total pre-tax charge for the Europe 2015 restructuring initiatives was $7.7 million. The following table summarizes total expected, incurred and remaining pre-tax restructuring costs for the Europe 2015 restructuring actions:
|  |  |  |  |  |  |  | Facility |  |  |
|  |  |  |  | Legal and |  | Exit |  |  |
|  | Severance |  | consultancy |  | and other |  | Total
|  | (in millions)
Costs incurred—2015 |  | $ | 6.6 |  | $ | — |  | $ | 0.3 |  | $ | 6.9
Costs incurred—2016 |  |  | 1.3 |  |  | 0.5 |  |  | — |  |  | 1.8
Adjustments to restructuring costs—2017 |  |  | (1.0) |  |  | — |  |  | — |  |  | (1.0)
Total restructuring costs |  | $ | 6.9 |  | $ | 0.5 |  | $ | 0.3 |  | $ | 7.7
Details of the Company’s Europe 2015 restructuring reserve activity for the year ended December 31, 2018 are as follows:
|  |  |  |  | Legal and |  | Facility exit |  |  |
|  | Severance |  | Consultancy |  | and other |  | Total
|  | (in millions)
Balance at December 31, 2015 |  | $ | 6.4 |  | $ | — |  | $ | — |  | $ | 6.4
Net pre-tax restructuring charges |  |  | 1.3 |  |  | 0.5 |  |  | — |  |  | 1.8
Utilization and foreign currency impact |  |  | (2.9) |  |  | (0.5) |  |  | — |  |  | (3.4)
Balance at December 31, 2016 |  | $ | 4.8 |  | $ | — |  | $ | — |  | $ | 4.8
Net pre-tax restructuring charges |  |  | (1.0) |  |  | — |  |  | — |  |  | (1.0)
Utilization and foreign currency impact |  |  | (2.8) |  |  | — |  |  | — |  |  | (2.8)
Balance at December 31, 2017 |  | $ | 1.0 |  | $ | — |  | $ | — |  | $ | 1.0
Net pre-tax restructuring adjustments |  |  | — |  |  | — |  |  | — |  |  | —
Utilization and foreign currency impact |  |  | (0.9) |  |  | — |  |  | — |  |  | (0.9)
Balance at December 31, 2018 |  | $ | 0.1 |  | $ | — |  | $ | — |  | $ | 0.1
2015 Actions in the Americas and APMEA In 2015, the Board of Directors of the Company approved a transformation program relating to the Company’s Americas and APMEA businesses, which primarily involved the exit of low-margin, non-core product lines, and enhancing global sourcing capabilities (“phase one”). The Company eliminated approximately $165 million of the combined Americas and APMEA net sales primarily within the Company’s do-it-yourself (DIY) distribution channel. As part of the exit of non-core product lines, the Company entered into an agreement to sell an operating subsidiary in China that was dedicated exclusively to the manufacturing of products being discontinued. The sale was finalized in the second quarter of 2016, and the Company recognized a pre-tax gain of $8.7 million and received proceeds from the sale of $8.4 million. The second phase of the program involved the consolidation of manufacturing facilities and distribution center network optimization, including reducing the square footage of the Company’s Americas facilities, which together with phase one, reduced the Americas net operating footprint by approximately 30%. This phase of the program was designed to improve the utilization of the Company’s remaining facilities, better leverage its cost structure, reduce working capital, and improve execution of customer delivery requirements. As of December 31, 2017, the second phase was complete. On a combined basis, the total pre-tax cost for the Company’s transformation program related to its Americas and APMEA businesses was $59.8 million, including restructuring costs of $18.1 million, goodwill and intangible asset impairments of $13.5 million and other transformation and deployment costs of approximately $28.2 million. The other transformation and deployment costs included consulting and project management fees, inventory write-offs, and other associated costs. All costs associated with the Americas and APMEA transformation program were incurred as of December 31, 2017. The following table summarizes by type, the total incurred pre-tax restructuring costs for the Company’s transformation program related to its Americas and APMEA businesses (phase one and phase two combined):
|  |  |  |  |  |  |  |  |  |  | Facility |  |  |
|  |  |  |  | Legal and |  | Asset |  | exit |  |  |
|  | Severance |  | consultancy |  | write-downs |  | and other |  | Total
|  | (in millions)
Costs incurred—2015 |  | $ | 8.5 |  | $ | 0.7 |  | $ | 1.6 |  | $ | 2.8 |  | $ | 13.6
Costs incurred—2016 |  |  | (1.5) |  |  | 0.2 |  |  | 2.9 |  |  | 0.5 |  |  | 2.1
Costs incurred—2017 |  |  | — |  |  | — |  |  | 2.2 |  |  | 0.2 |  |  | 2.4
Total restructuring costs |  | $ | 7.0 |  | $ | 0.9 |  | $ | 6.7 |  | $ | 3.5 |  | $ | 18.1
Details of the restructuring reserve activity for the Company’s Americas and APMEA 2015 transformation program for the year ended December 31, 2018 are as follows:
|  |  |  |  |  |  |  |  |  | Facility |  |
|  |  |  |  | Legal and |  | Asset |  | exit |  |  |
|  | Severance |  | consultancy |  | write-downs |  | and other |  | Total
|  | (in millions)
Balance at December 31, 2015 |  | $ | 5.0 |  | $ | 0.4 |  | $ | — |  | $ | 1.0 |  | $ | 6.4
Net pre-tax restructuring charges |  |  | (1.5) |  |  | 0.2 |  |  | 2.9 |  |  | 0.5 |  |  | 2.1
Utilization and foreign currency impact |  |  | (2.3) |  |  | (0.6) |  |  | (2.9) |  |  | (1.5) |  |  | (7.3)
Balance at December 31, 2016 |  | $ | 1.2 |  | $ | — |  | $ | — |  | $ | — |  | $ | 1.2
Net pre-tax restructuring charges |  |  | — |  |  | — |  |  | 2.2 |  |  | 0.2 |  |  | 2.4
Utilization and foreign currency impact |  |  | (1.0) |  |  | — |  |  | (2.2) |  |  | (0.2) |  |  | (3.4)
Balance at December 31, 2017 |  | $ | 0.2 |  | $ | — |  | $ | — |  | $ | — |  | $ | 0.2
Net pre-tax restructuring charges |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
Utilization and foreign currency impact |  |  | (0.2) |  |  | — |  |  | — |  |  | — |  |  | (0.2)
Balance at December 31, 2018 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —

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- 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 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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