Restructuring Charges

9 Months Ended

Sep. 30, 2019

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 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 and signed by the Italian government in 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. These actions are complete as of September 30, 2019.

In 2018, we announced actions in EMEA to reduce fixed costs by $50 million. The initiatives primarily include headcount reductions throughout the EMEA region. Additionally, we exited domestic sales operations in Turkey. We expect these actions will be substantially complete in 2019. As of September 30, 2019, approximately $21 million remains to be expensed.

On May 31, 2019, we announced our intention to reconvert our Naples, Italy manufacturing plant and potentially sell the plant to a third party. On September 16, 2019, we entered into a preliminary agreement to sell the plant to a third-party purchaser and to support costs associated with the transition. Finalization of the transaction is subject to satisfaction of certain conditions precedent, including consultation with the government and unions.

In connection with this action, we incurred approximately $25 million in asset impairment costs and approximately $4 million in other associated costs during the nine months ended September 30, 2019. We anticipate that we will incur approximately $19 million in employee-related costs and approximately $79 million in other associated costs in connection with this action. We estimate that $98 million of the estimated $127 million total costs will result in future cash expenditures. We estimate that approximately $122 million of the $127 million total costs will be incurred in 2019 and that approximately $73 million of the estimated $98 million total cash expenditures will occur in 2019. We expect these actions to be completed in 2020.

The following table summarizes the restructuring actions above for the nine months ended September 30, 2019 and the total costs to date for each plan:



Millions of dollars	2019		Total
Indesit	$	9	$	237
EMEA fixed cost actions	$	45	$	59
Naples	$	29	$	29

The following table summarizes the changes to our restructuring liability during the nine months ended September 30, 2019:



Millions of dollars	December 31, 2018			Charges to Earnings		Cash Paid			Non-Cash and Other			September 30, 2019
Employee termination costs	$	84		$	66	$	(101	)	$	—		$	49
Asset impairment costs	—			56		(7		)	(41		)	8
Facility exit costs	(9		)	15		(19		)	—			(13		)
Other exit costs	21			5		(4		)	(3		)	19
Total	$	96		$	142	$	(131	)	$	(44	)	$	63

The following table summarizes the restructuring charges by operating segment for the period presented:



	Nine Months Ended
Millions of dollars	September 30, 2019
North America	$	—
EMEA	132
Latin America	7
Asia	3
Corporate / Other	—
Total	$	142