Restructuring Charges

12 Months Ended

Dec. 31, 2015

RESTRUCTURING CHARGES

During 2014 and the twelve months ended December 31, 2015, we announced the following restructuring plans: (a) the closure of a microwave oven manufacturing facility and other organizational efficiency actions in EMEA and Latin America, (b) organizational integration activities in China and Europe to support the integration of the acquisitions of Whirlpool China and Indesit, and (c) the closure of a research and development facility in Germany in 2016.

In the second quarter of 2015, we committed to a restructuring plan to integrate our Italian legacy operations with those of Indesit. The industrial restructuring plan, which was approved by the relevant labor unions in July 2015 and signed by the Italian government in August 2015, provides for the closure or repurposing of certain manufacturing facilities and headcount reductions at other facilities. In addition, the restructuring plan provides for headcount reductions in the salaried employee workforce.

We estimate that we will incur up to €179 million (approximately $194 million as of December 31, 2015) in employee-related costs, €25 million (approximately $27 million as of December 31, 2015) in asset impairment costs, and €37 million (approximately $40 million as of December 31, 2015) in other associated costs in connection with these actions. Completion of these plans is expected by the end of 2018. We estimate €209 million (approximately $227 million as of December 31, 2015) of the estimated €241 million total cost will result in future cash expenditures.

The following tables summarize the changes to our restructuring liability for the years ended December 31, 2015 and 2014:



Millions of dollars	12/31/2014		Charges to Earnings		Cash Paid			Non-Cash and Other			Revision of Estimate		12/31/2015
Employee termination costs	$	58	$	136	$	(168	)	$	1		$	3	$	30
Asset impairment costs	—		30		—			(30		)	—		—
Facility exit costs	4		12		(13		)	—			—		3
Other exit costs	16		23		(21		)	—			—		18
Total	$	78	$	201	$	(202	)	$	(29	)	$	3	$	51



Millions of dollars	12/31/2013		Acquisition - related⁽¹⁾		Charge to Earnings		Cash Paid			Non-cash and Other			12/31/2014
Employee termination costs	$	74	$	40	$	82	$	(128	)	$	(10	)	$	58
Asset impairment costs	—		—		26		—			(26		)	—
Facility exit costs	14		—		16		(26		)	—			4
Other exit costs	18		—		12		(14		)	—			16
Total	$	106	$	40	$	136	$	(168	)	$	(36	)	$	78

⁽¹⁾A $40 million restructuring liability was acquired in the acquisition of Indesit in the fourth quarter of 2014 related to an ongoing plan previously initiated by Indesit management. As of December 31, 2014, the acquired restructuring liability was $17 million.

The following table summarizes 2015 restructuring charges by operating segment:



Millions of dollars	2015 Charges
North America	$	10
EMEA	158
Latin America	26
Asia	—
Corporate / Other	7
Total	$	201