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Restructuring Expenses
 3 Months Ended
Jun. 30, 2014
Restructuring Expenses [Abstract]  
Restructuring Expenses
Note 6: Restructuring Expenses

During fiscal 2013, the Company announced its intention to restructure its Europe segment.  The Company’s restructuring actions and plans have included exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, implementing headcount reductions, and disposing of and selling certain underperforming or non-strategic assets. The restructuring activities are designed to align the cost structure of the segment with the segment’s strategic focus on the commercial vehicle, off-highway, and engine products markets, while improving gross margin and return on average capital employed.

Since commencement of the Europe segment restructuring program, the Company has recorded $28.6 million of employee severance costs, primarily related to headcount reductions at two manufacturing facilities and the segment headquarters, $26.1 million of asset impairment charges, and $7.9 million of repositioning expenses, primarily related to accelerated depreciation of production equipment that is no longer used because of manufacturing process changes and equipment transfer costs.

Restructuring and repositioning expenses related to the Europe segment restructuring program were as follows:

 
 
Three months ended June 30,
 
 
 
2014
  
2013
 
Employee severance and related benefits
 
$
-
  
$
0.3
 
Accelerated depreciation
  
-
   
2.2
 
Other repositioning costs
  
0.3
   
0.2
 
Total restructuring and repositioning expenses
 
$
0.3
  
$
2.7
 

During the three months ended June 30, 2014 and 2013, $0.3 million and $0.5 million, respectively, of restructuring and repositioning costs were recorded as restructuring expenses in the consolidated statement of operations.  During the three months ended June 30, 2013, the Company recorded $2.2 million of restructuring and repositioning expenses within cost of sales.
 
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance related to the Europe segment restructuring program were as follows:

 
 
Three months ended June 30,
 
 
 
2014
  
2013
 
Beginning balance
 
$
18.3
  
$
11.6
 
Additions
  
-
   
0.3
 
Payments
  
(1.5
)
  
(0.6
)
Effect of exchange rate changes
  
(0.2
)
  
0.1
 
Ending balance
 
$
16.6
  
$
11.4
 

During the three months ended June 30, 2014, the Company recorded $0.5 million of restructuring expenses in its South America segment related to employee severance costs.  The headcount reductions were in response to the recent economic slowdown in Brazil and reflect the Company’s focus on maintaining profitability in the segment despite lower sales volume.