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87
2016. The Company expects the total cash costs of the 2016 Restructuring Actions to be approximately $41 million, of which $40
million has been accrued as of December 31, 2015, with the remainder to be incurred in 2016.
The Company expects to incur total charges related to the 2016 Restructuring Actions of approximately $47 million in ISS.
Impact to 2015 Financial Results
For the year ended December 31, 2015, charges for the 2016 Restructuring Actions were recorded in the Company’s Consolidated
Statements of Earnings as follows:
Restructuring
Impact on
and related
Operating
charges
Income
Employee termination benefit charges
$
40.4
$
40.4
For the year ended December 31, 2015, the Company incurred restructuring charges in connection with the 2016 Restructuring
Actions in the Company’s segments as follows:
2015
ISS
$
40.4
For the year ended December 31, 2015, the Company incurred employee termination benefit charges, which include severance,
medical and other benefits. Charges for the 2016 Restructuring Actions and all of the other restructuring actions were recorded in
accordance with FASB guidance on employers’ accounting for postemployment benefits and guidance on accounting for costs
associated with exit or disposal activities, as appropriate.
Liability Rollforward
The following table represents a rollforward of the liability incurred for employee termination benefits in connection with the 2016
Restructuring Actions. The total restructuring liability as of December 31, 2015 is included in Accrued liabilities on the Company’s
Consolidated Statements of Financial Position.
Employee
Termination
Benefits
Balance at January 1, 2015
$
–
Costs incurred
40.4
Reversals (1)
–
Total restructuring charges, net
40.4
Payments & Other (2)
–
Balance at December 31, 2015
$
40.4
(1) Reversals due to changes in estimates for employee termination benefits.
(2) Other consists of changes in the liability balance due to foreign currency translations.
2015 Restructuring Actions
General
On July 21, 2015, the Company announced restructuring actions (the “2015 Restructuring Actions”) designed to increase profitability
and operational efficiency. These Company-wide restructuring actions are broad-based but primarily capture the anticipated cost and
expense synergies from the Kofax and ReadSoft acquisitions. Additionally, as the strong U.S. dollar continues to negatively impact
the Company’s earnings, restructuring actions were taken to reduce cost and expense structure in the ISS segment and corporate
organization. Primary Company-wide impacts are general and administrative, marketing and development positions, as well as the
consolidation of regional facilities.
The 2015 Restructuring Actions are expected to impact about 500 positions worldwide over the next 12-month period with
approximately one-third of the positions being shifted to low-cost countries. The 2015 Restructuring Actions will result in total pre-tax
charges of approximately $42 million, with approximately $35 million incurred to date and approximately $7 million remaining to be