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Restructuring Activities
 9 Months Ended
Dec. 31, 2015
Restructuring Activities [Abstract]  
Restructuring Activities
Note 6: Restructuring Activities

During the third quarter of fiscal 2016, the Company offered a voluntary retirement program to certain U.S. salaried employees.  The program was offered as part of the Company’s Strengthen, Diversify, and Grow transformational initiative and will support the objective of reducing operational and SG&A cost structures.

During the first quarter of fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility, and is in the process of transferring the facility’s production to other Americas segment manufacturing facilities.  Also during fiscal 2016, the Company completed the transfer of production from its McHenry, Illinois manufacturing facility to other Americas segment manufacturing facilities.  These restructuring activities reflect the Company’s focus on operating scale manufacturing facilities to improve overall competitiveness and profitability.
 
During fiscal 2015, the Company initiated a headcount reduction plan for its Brazil manufacturing facility within its Americas segment. The headcount reductions were in response to the economic slowdown in Brazil and reflect the Company’s objective to maintain profitability in this business despite lower sales volume.

In addition, the Company continues to execute restructuring activities within its Europe segment.  These restructuring activities have included exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, consolidating production facilities, implementing headcount reductions, and disposing of and selling certain underperforming or non-strategic assets. The Company designed these activities to align the cost structure of the segment with its strategic focus on the commercial vehicle, off-highway, automotive component, and engine product markets, while improving gross margin and return on average capital employed.

Restructuring and repositioning expenses were as follows:

  
Three months ended
 December 31,
  
Nine months ended
 December 31,
 
  
2015
  
2014
  
2015
  
2014
 
Employee severance and related benefits
 
$
0.9
  
$
0.8
  
$
2.6
  
$
1.2
 
Other restructuring and repositioning expenses
  
0.7
   
1.1
   
2.6
   
2.5
 
Total
 
$
1.6
  
$
1.9
  
$
5.2
  
$
3.7
 
 
Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:

  
Three months ended December 31,
 
  
2015
  
2014
 
Beginning balance
 
$
7.8
  
$
16.0
 
Additions
  
0.9
   
0.8
 
Payments
  
(0.9
)
  
(0.7
)
Effect of exchange rate changes
  
(0.2
)
  
(1.0
)
Ending balance
 
$
7.6
  
$
15.1
 

  
Nine months ended December 31,
 
  
2015
  
2014
 
Beginning balance
 
$
9.9
  
$
19.4
 
Additions
  
2.6
   
1.2
 
Payments
  
(5.1
)
  
(3.2
)
Effect of exchange rate changes
  
0.2
   
(2.3
)
Ending balance
 
$
7.6
  
$
15.1
 
 
During the first quarter of fiscal 2016, the Company reclassified property, plant and equipment related to a manufacturing facility in the Europe segment to assets held for sale.  At December 31, 2015 and March 31, 2015, assets held for sale of $8.5 million and $3.2 million, respectively, were included in other noncurrent assets and consisted of facilities that the Company is actively marketing for sale.

During the third quarter of fiscal 2015, the Company sold a wind tunnel within the Europe segment, which was previously reported as an asset held for sale, for cash proceeds of $5.8 million and recognized a gain of $3.2 million.