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Restructuring Charges | 9 Months Ended
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Sep. 30, 2018
Restructuring Charges [Abstract] |
Restructuring Charges | 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: 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 $208 million as of September 30, 2018) in employee-related costs, €25 million (approximately $29 million as of September 30, 2018) in asset impairment costs, and €37 million (approximately $43 million as of September 30, 2018) in other associated costs in connection with these actions. We expect these actions will be complete in 2019. We estimate €209 million (approximately $243 million as of September 30, 2018) of the estimated €241 million (approximately $280 million as of September 30, 2018) total cost will result in cash expenditures. As of September 30, 2018, €30 million (approximately $35 million) remains to be expensed. On January 24, 2017, the Company and certain of its 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 Company's Yate, U.K. facility to focus on manufacturing for U.K. consumer needs only; ending production in Amiens, France, which was completed in 2018; and concentrating the production of dryers for non-U.K. consumer needs in Lodz, Poland. The Company anticipates that approximately 500 positions have been impacted by these actions. The Company expects these actions to be substantially complete in 2018. The Company estimates that it will incur approximately €59 million (approximately $68 million as of September 30, 2018) in employee-related costs, approximately €11 million (approximately $13 million as of September 30, 2018) in asset impairment costs, and approximately €10 million (approximately $12 million as of September 30, 2018) in other associated costs in connection with these actions. The Company estimates that approximately €69 million (approximately $80 million as of September 30, 2018) of the estimated €79 million (approximately $92 million as of September 30, 2018) total cost will result in future cash expenditures. As of September 30, 2018, €7 million (approximately $8 million) remains to be expensed. In the fourth quarter of 2017, the Company announced an initiative to reduce fixed overhead costs by $150 million, which were primarily implemented in the first half of 2018. This initiative primarily impacts our overhead costs, including salary headcount and third-party services. The Company has implemented certain restructuring actions pursuant to this initiative. On January 10, 2018, the Company announced certain restructuring actions related to streamlining operations in our Embraco compressor business. These actions resulted in ceasing operations and ending production at Embraco's Riva Presso Chieri, Turin, Italy facility in 2018, and concentrating the assembly and manufacturing of compressors in Embraco's other manufacturing centers. The Company anticipates that approximately 500 positions were impacted by these actions. These actions are substantially complete as of the third quarter of 2018. The Company estimates that it will incur up to approximately €52 million (approximately $60 million as of September 30, 2018) in employee-related costs, approximately €20 million (approximately $23 million as of September 30, 2018) in asset impairment costs and approximately €5 million (approximately $6 million as of September 30, 2018) in other associated costs in connection with these actions. The Company estimates that approximately €56 million (approximately $65 million as of September 30, 2018) of the estimated €77 million (approximately $89 million as of September 30, 2018) total cost will result in future cash expenditures. As of September 30, 2018, €5 million (approximately $6 million as of September 30, 2018) remains to be expensed. The following table summarizes the change to our restructuring liability for the period ended September 30, 2018:
Millions of dollars | December 31, 2017 | Charge to Earnings | Cash Paid | Non-cash and Other | September 30, 2018
Employee termination costs | $ | 131 |  | $ | 137 |  | $ | (167 | ) | $ | — |  | $ | 101 |
Asset impairment costs | — |  | 36 |  | — |  | (36 | ) | — |
Facility exit costs | 2 |  | 35 |  | (39 | ) | — |  | (2 | )
Other exit costs | 29 |  | 8 |  | (10 | ) | (6 | ) | 21 |
Total | $ | 162 |  | $ | 216 |  | $ | (216 | ) | $ | (42 | ) | $ | 120 |
The following table summarizes the restructuring charges by operating segment as of September 30, 2018:
Millions of dollars | September 30, 2018
North America | $ | 5 |
EMEA | 99 |
Latin America | 95 |
Asia | — |
Corporate / Other | 17 |
Total | $ | 216 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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- References No definition available. + Details
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