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Restructuring Charges | 12 Months Ended
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Dec. 31, 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, provided for the closure or repurposing of certain manufacturing facilities and headcount reductions at other facilities. In addition, the restructuring plan provided for headcount reductions in the salaried employee workforce. We estimate that we will incur up to €179 million (approximately $205 million as of December 31, 2018) in employee-related costs, €25 million (approximately $29 million as of December 31, 2018) in asset impairment costs and €37 million (approximately $42 million as of December 31, 2018) in other associated costs in connection with these actions. We expect these actions will be complete in 2019. We estimate €209 million (approximately $240 million as of December 31, 2018) of the estimated €241 million (approximately $276 million as of December 31, 2018) total cost will result or has resulted in cash expenditures. As of December 31, 2018, €10 million (approximately $11 million) remains to be expensed. In January 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 resulted 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 2018 in Amiens, France; and concentrating the production of dryers for non-U.K. consumer needs in Lodz, Poland. These actions were substantially complete in 2018 with approximately 500 positions being impacted. The Company estimates that it will incur up to approximately €59 million (approximately $68 million as of December 31, 2018) in employee-related costs, approximately €11 million (approximately $13 million as of December 31, 2018) in asset impairment costs and approximately €10 million (approximately $11 million as of December 31, 2018) in other associated costs in connection with these actions. The Company estimates that approximately €69 million (approximately $79 million as of December 31, 2018) of the estimated €80 million (approximately $92 million as of December 31, 2018) total cost will result or has resulted in cash expenditures. As of December 31, 2018, €3 million (approximately $4 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 was implemented in 2018. This initiative primarily impacted our overhead costs, including salary headcount and third-party services. The restructuring actions pursuant to this initiative are complete. In January 2018, we 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 restructuring actions pursuant to these actions are complete. In the fourth quarter of 2018, the Company announced actions in EMEA to reduce fixed overhead costs by $50 million. The initiatives primarily include the exit from domestic sales operations (which does not include manufacturing operations) in Turkey and headcount reductions throughout the EMEA region. The Company estimates that it will incur up to €56 million (approximately $64 million as of December 31, 2018) in employee-related costs, approximately €6 million (approximately $7 million as of December 31, 2018) in asset impairment costs and approximately €11 million (approximately $13 million as of December 31, 2018) in other associated costs in connection with these actions. We expect these actions will be substantially complete in 2019. The following tables summarize the changes to our restructuring liability for the years ended December 31, 2018 and 2017:
Millions of dollars | 12/31/2017 | Charges to Earnings | Cash Paid | Non-Cash and Other | 12/31/2018
Employee termination costs | $ | 131 |  | $ | 155 |  | $ | (202 | ) | $ | — |  | $ | 84 |
Asset impairment costs | — |  | 43 |  | — |  | (43 | ) | — |
Facility exit costs | 2 |  | 41 |  | (52 | ) | — |  | (9 | )
Other exit costs | 29 |  | 8 |  | (11 | ) | (5 | ) | 21 |
Total | $ | 162 |  | $ | 247 |  | $ | (265 | ) | $ | (48 | ) | $ | 96 |
Millions of dollars | 12/31/2016 | Charge to Earnings | Cash Paid | Non-cash and Other | 12/31/2017
Employee termination costs | $ | 71 |  | $ | 185 |  | $ | (125 | ) | $ | — |  | $ | 131 |
Asset impairment costs | — |  | 40 |  | — |  | (40 | ) | — |
Facility exit costs | 2 |  | 28 |  | (28 | ) | — |  | 2 |
Other exit costs | 14 |  | 22 |  | (19 | ) | 12 |  | 29 |
Total | $ | 87 |  | $ | 275 |  | $ | (172 | ) | $ | (28 | ) | $ | 162 |
The following table summarizes 2018 restructuring charges by operating segment:
Millions of dollars | 2018 Charges
North America | $ | 5 |
EMEA | 125 |
Latin America | 99 |
Asia | — |
Corporate / Other | 18 |
Total | $ | 247 |

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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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