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RESTRUCTURING CHARGES
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3 Months Ended |
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Mar. 31, 2015
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| Restructuring Charges [Abstract] | |
| RESTRUCTURING CHARGES |
RESTRUCTURING CHARGES
In the first quarter 2015, we recorded a $20.7 million restructuring charge ($13.2 million, net of tax) all of which was recorded in selling, general and administrative expenses on our Consolidated Statements of Income. This charge resulted from our continuing efforts to realign our internal resources to support the Company’s strategic objectives and increase the integration of our global operations.
The restructuring charge primarily relates to a reduction of headcount of approximately 300 positions resulting in a charge of $16.2 million, which was accrued for under existing severance plans or statutory requirements. The remainder was related to costs associated with real estate exit of $1.2 million and other integration costs of $3.3 million. Generally, severance benefits for our U.S. employees are paid through monthly payroll according to the number of weeks of severance benefit provided to the employee, while our international employees receive a lump sum severance payment for their benefit. Payments related to the above restructuring charges will be substantially completed within 2015. Payments related to the above restructuring charges totaled $4.1 million for the three months ended March 31, 2015.
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