RESTRUCTURING CHARGES

We periodically take action to improve operating efficiencies, typically in connection with business acquisitions or changes in the economic environment. Our footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the following plans.

During 2014 and 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 Whirlpool China and Indesit, and (c) the closure of a research and development facility in Germany in 2016. All of these actions were substantially completed 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 $189 million as of December 31, 2016) in employee-related costs, €25 million (approximately $26 million as of December 31, 2016) in asset impairment costs, and €37 million (approximately $39 million as of December 31, 2016) in other associated costs in connection with these actions. These actions will be substantially complete in 2018. We estimate €209 million (approximately $220 million as of December 31, 2016) of the estimated €241 million total cost will result in future cash expenditures.

On January 24, 2017 the Company and certain subsidiary companies began consultations with certain works councils and other regulatory agencies in connection with the Company’s proposal to restructure its EMEA dryer manufacturing operations. Company management authorized the initiation of such consultations on December 30, 2016. These actions are expected to result in changing the operations at the Yate, U.K. facility to focus on manufacturing for U.K. consumer needs only; ending production in 2018 in Amiens, France; and concentrating the production of dryers for non-UK consumer needs in Lodz, Poland. The Company currently anticipates that approximately 500 positions would be impacted by these actions. The Company would expect these actions to be substantially complete in 2018. The Company estimates that it will incur up to approximately $65 million in employee-related costs, approximately $12 million in asset impairment costs, and approximately $11 million in other associated costs in connection with these actions. The Company estimates that approximately $76 million of the estimated $88 million total cost will result in future cash expenditures. The actions outlined above resulted in a 2016 charge of $20 million which fell within the reported charges for 2016.

The following tables summarize the changes to our restructuring liability for the years ended December 31, 2016 and 2015:



Millions of dollars	12/31/2015		Charges to Earnings		Cash Paid			Non-Cash and Other			Revision of Estimate		12/31/2016
Employee termination costs	$	30	$	133	$	(90	)	$	(2	)	$	—	$	71
Asset impairment costs	—		17		(1		)	(16		)	—		—
Facility exit costs	3		15		(16		)	—			—		2
Other exit costs	18		8		(12		)	—			—		14
Total	$	51	$	173	$	(119	)	$	(18	)	$	—	$	87



Millions of dollars	12/31/2014		Charge 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

The following table summarizes 2016 restructuring charges by operating segment:



Millions of dollars	2016 Charges
North America	$	14
EMEA	146
Latin America	9
Asia	3
Corporate / Other	1
Total	$	173