Restructuring and Impairment Activities

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

The Company incurred restructuring and impairment expense of $1.6 million and $0.4 million in the three months ended September 30, 2019 and 2018, respectively, and $2.0 million and $1.4 million in the nine months ended September 30, 2019 and 2018, respectively.

In the AMS segment, restructuring and impairment expense was $0.0 million and $0.4 million for the three months ended September 30, 2019 and 2018, respectively, and $0.0 million and $1.2 million in the nine months ended September 30, 2019 and 2018, respectively. In the nine months ended September 30, 2018, restructuring and impairment expense consisted of $0.9 million in severance accruals for employees at our U.S. manufacturing operations, as well as $0.3 million in impairment charges at our U.S. manufacturing operations.

In the EP segment, restructuring and impairment expense was $1.6 million and $0.0 million for the three months ended September 30, 2019 and 2018, respectively, and $2.0 million and $0.2 million in the nine months ended September 30, 2019 and 2018, respectively. In the nine months ended September 30, 2019, restructuring and impairment expense consisted of $2.0 million in consulting fees and severance accruals for employees at our manufacturing facilities in the U.S., Brazil and France. In the nine months ended September 30, 2018, restructuring and impairment expense consisted of $0.2 million in severance accruals for employees at our manufacturing facilities in France.

Restructuring liabilities were classified within Accrued expenses and other current liabilities in each of the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended September 30, 2019 and December 31, 2018 are summarized as follows ($ in millions):



	Nine Months Ended			Year Ended
	September 30, 2019			December 31, 2018
Balance at beginning of year	$	1.4		$	1.7
Accruals for announced programs	2.0			1.3
Cash payments	(2.7		)	(3.3		)
Other	—			1.8
Exchange rate impacts	(0.1		)	(0.1		)
Balance at end of period	$	0.6		$	1.4

Long-lived assets to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the assets; the assets are available for immediate sale in present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; the sale of the assets is probable, and transfer of the assets is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the assets beyond one year; the assets are being actively marketed for sale at a price that is reasonable in relation to current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

A long-lived asset that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. The fair value of a long-lived asset less any costs to sell is assessed each reporting period it remains classified as held for sale and any reduction in fair value is reported as an adjustment to the carrying value of the asset. Upon being classified as held for sale, depreciation is ceased. Long-lived assets to be disposed of other than by sale continue to be depreciated. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the assets and liabilities of the disposal group, if material, are reported in the line item Assets held for sale in our condensed consolidated balance sheets.

In early 2015, the Company made the decision to dispose of the Company's mothballed RTL facility and related equipment in the Philippines. These assets are included in the EP segment. During 2015, the Company reclassified the balance of the equipment, along with the land and building associated with the property, at this location from Property, plant and equipment, net, to Assets held for sale on the condensed consolidated balance sheets. The reclassifications were made for all assets that are expected to be sold within one year of the balance sheet date and, as of September 30, 2019, all of the physical assets of this entity are classified as Assets held for sale, and the Company is currently exploring options to sell or lease its remaining net assets. The Company incurred no impairment charges related to these assets during the nine months ended September 30, 2019 or 2018.