Special Charges (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges, net line item on the consolidated statements of income for the periods ending December 31, 2016, 2015, and 2014:



	Special & Restructuring Charges, net
	For the year ended December 31,
	2016		2015		2014
Special charges, net	$	8,196	$	9,720	$	7,491
Restructuring charges, net	8,975		4,634		5,246
Total special and restructuring charges, net	$	17,171	$	14,354	$	12,737

The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the year ending December 31, 2016, 2015, and 2014. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2016
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses (recoveries)	$	792	$	3,701	$	—	$	4,493
Employee related expenses	2,393		2,089		—		4,482
Total restructuring charges, net	$	3,185	$	5,790	$	—	$	8,975

Accrued restructuring charges as of December 31, 2015							$	663
Total year to date charges, net (shown above)							8,975
Charges paid / settled, net							(8,020		)
Accrued restructuring charges as of December 31, 2016							$	1,618

We expect to make payment or settle the majority of the restructuring charges accrued as of December 31, 2016 during the first quarter of 2017.



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2015
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses (recoveries)	$	(376	)	$	257	$	—	$	(119	)
Employee related expenses	3,279			1,474		—		4,753
Total restructuring charges, net	$	2,903		$	1,731	$	—	$	4,634

Accrued restructuring charges as of December 31, 2014								$	1,645
Total year to date charges, net (shown above)								4,634
Charges paid / settled, net								(5,616		)
Accrued restructuring charges as of December 31, 2015								$	663



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2014
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses	$	447	$	252	$	—	$	699
Employee related expenses	1,516		2,714		317		4,547
Total restructuring charges, net	$	1,963	$	2,966	$	317	$	5,246

Accrued restructuring charges as of December 31, 2013							$	3,063
Total year to date charges, net (shown above)							5,246
Charges paid / settled, net							(6,664		)
Accrued restructuring charges as of December 31, 2014							$	1,645

The following table (in thousands) summarizes the total program costs for the 2014 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2014 Announced Restructuring action.



	2014 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	(64	)	$	95	$	—	$	31
Employee related expenses - incurred to date	1,463			2,956		317		4,736
Total restructuring related charges - incurred to date	$	1,399		$	3,051	$	317	$	4,767

During 2016, we initiated certain restructuring activities, under which we continued to simplify our business ("2016 Actions").

Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller

facilities.



	2016 Actions Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy		Advanced Flow Solutions		Total
Facility related expenses - incurred to date	$	708	$	94	$	802
Employee related expenses - incurred to date	2,476		1,181		3,657
Total restructuring related special charges - incurred to date	$	3,184	$	1,275	$	4,459

In July 2015, we announced the closure of one of the two Corona, California manufacturing facilities ("California

Restructuring"). Under this restructuring, we are reducing certain general, manufacturing and facility related expenses.



	California Restructuring Charges, net as of December 31, 2016
	Advanced Flow Solutions
Facility related expenses - incurred to date	$	3,700
Employee related expenses - incurred to date	800
Total restructuring related special charges - incurred to date	$	4,500

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2014:



	Special Charges, net
	For the year ended December 31, 2014
	Energy			Advanced Flow Solutions			Corporate		Total
Watts settlement	$	—		$	—		$	300	$	300
Divestitures	2,983			430			—		3,413
Energy settlement	(210		)	—			—		(210		)
Customer settlement	6,232			—			—		6,232
TMW settlement	—			(2,243		)	—		(2,243		)
Total special charges, net	$	9,005		$	(1,813	)	$	300	$	7,492

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2015:



	Special Charges, net
	For the year ended December 31, 2015
	Energy			Advanced Flow Solutions			Corporate		Total
Divestiture recoveries	$	(2	)	$	(1,042	)	$	—	$	(1,044	)
Acquisition related charges	—			919			—		919
Brazil closure	8,650			—			775		9,425
Executive retirement charges	—			—			420		420
Total special charges, net	$	8,648		$	(123	)	$	1,195	$	9,720

Special and Restructuring charges, net

Special and Restructuring Charges, net

Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges, net on our consolidated statements of income. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item.



	Special & Restructuring Charges, net
	For the year ended December 31,
	2016		2015		2014
Special charges, net	$	8,196	$	9,720	$	7,491
Restructuring charges, net	8,975		4,634		5,246
Total special and restructuring charges, net	$	17,171	$	14,354	$	12,737

Special Charges, net

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2016:



	Special Charges, net
	For the year ended December 31, 2016
	Energy		Advanced Flow Solutions			Corporate		Total
Acquisition related charges (recoveries)	$	—	$	(161	)	$	978	$	817
Brazil closure	2,920		—			2		2,922
Pension settlement	—		—			4,457		4,457
Total special charges, net	$	2,920	$	(161	)	$	5,437	$	8,196

Acquisition related charges (recoveries) are described below:


•	On October 12, 2016, we acquired Critical Flow Solutions. In connection with our acquisition, we recorded $1.0 million of acquisition related professional fees for the year ended December 31, 2016.


•	On April 15, 2015, we acquired Germany-based Schroedahl. In connection with our acquisition of Schroedahl, we recorded a $0.2 million acquisition related professional fees recoveries for the year ended December 31, 2016.

Brazil Closure: On November 3, 2015 the Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras. CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market conditions and outlook deteriorated. In connection with the closure, we recorded $2.9 million of charges within the Energy segment during the twelve months ended December 31, 2016, which primarily related to employee termination costs and losses incurred subsequent to our Q1 2016 closure of manufacturing operations. As of December 31, 2016, our remaining Brazil assets were $2.0 million of which $0.9 million relates to cash, $0.9 million relates to assets held for sale, and $0.2 million relates to net third party accounts receivables. The Brazil assets held for sale as of December 31, 2016 are reported within the other current assets caption on our condensed consolidated balance sheet.

Pension Settlement: During the third quarter of 2016, management offered a lump sum cash payout option to terminated and vested pension plan participants. In connection with this action, the window for participants who opt to avail themselves of this program closed in the fourth quarter of 2016. During the fourth quarter of 2016, we incurred a non-cash settlement charge of $4.5 million recorded within the special and restructuring charges, net line item. Refer to Note 13, "Retirement Plans" for additional disclosure.

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2015:



	Special Charges, net
	For the year ended December 31, 2015
	Energy			Advanced Flow Solutions			Corporate		Total
Divestiture recoveries	$	(2	)	$	(1,042	)	$	—	$	(1,044	)
Acquisition related charges	—			919			—		919
Brazil closure	8,650			—			775		9,425
Executive retirement charges	—			—			420		420
Total special charges, net	$	8,648		$	(123	)	$	1,195	$	9,720

Divestiture recoveries: On January 6, 2015, we announced the divestiture of two of our non-core businesses as part of our simplification strategy. The Energy divestiture was substantially completed in the fourth quarter of 2014 with the related charge recorded in 2014. During the first quarter of 2015, the Advanced Flow Solutions divestiture was substantially completed and we recorded a gain of $1.0 million.

Acquisition related charges: In connection with our acquisition of Schroedahl, we recorded $0.9 million of acquisition related professional fees for the year ended December 31, 2015.

Brazil closure: In connection with the closure, we recorded $8.7 million in charges within our Energy segment during the year ended December 31, 2015. These charges relate to: the realizability of the value added tax recoverable for $4.4 million as our exit will stop future sales which are needed to recover these taxes paid, supplier cancellation penalties of $1.6 million as we have fixed purchase commitments which will be canceled, customer cancellation penalties of $1.1 million, litigation claims of $0.5 million that we deem probable for risk of loss, professional fees of $0.3 million, and other charges of $0.8 million. In addition, during the fourth quarter of 2015, we recorded $0.8 million of professional fees associated with the Brazil matter at Corporate. As of December 31, 2015, our remaining Brazil assets were $7.1 million of which $4.2 million relates to inventory, $1.0 million to accounts receivable, and $1.0 million to cash.

Executive Retirement Charges: During the first quarter of 2015, we recorded charges of $0.4 million associated with the retirement of our Energy President. These charges primarily related to equity award modifications.

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2014:



	Special Charges, net
	For the year ended December 31, 2014
	Energy			Advanced Flow Solutions			Corporate		Total
Watts settlement	$	—		$	—		$	300	$	300
Divestitures	2,983			430			—		3,413
Energy settlement	(210		)	—			—		(210		)
Customer settlement	6,232			—			—		6,232
TMW settlement	—			(2,243		)	—		(2,243		)
Total special charges, net	$	9,005		$	(1,813	)	$	300	$	7,492

Watts Legal Settlement: On March 28, 2014, we settled a dispute for $1.5 million with Watts Water Technologies, Inc. Accordingly, we recorded a $0.3 million charge in the quarter, net of amounts previously accrued.

Divestitures: On January 6, 2015, we announced the divestiture of two of our non-core businesses as part of our simplification strategy. During the fourth quarter of 2014, we recorded $3.4 million of charges associated with losses related to these divestitures.

Energy Legal Settlement: During the fourth quarter of 2014, we recorded a gain of $0.2 million in connection with revaluing certain liabilities recorded in connection with a 2013 Energy segment purchase price arbitration settlement.

Customer Settlement: In February 2015, we agreed to resolve a longstanding customer dispute regarding our design and fabrication of cable protection systems for an off-shore windfarm, a product line in which we no longer are involved. The resolution of this dispute was recorded as a charge during the fourth quarter of 2014 in the amount of $6.2 million.

TMW settlement: On January 24, 2014, we reached a settlement on the T.M.W. Corporation ("TMW") arbitration where it was agreed that TMW would waive all rights to amounts due from us under a contingent consideration promissory note established at the time of acquisition, resulting in a gain of approximately $2.2 million during the first quarter of 2014.

Restructuring Charges, net



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2016
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses (recoveries)	$	792	$	3,701	$	—	$	4,493
Employee related expenses	2,393		2,089		—		4,482
Total restructuring charges, net	$	3,185	$	5,790	$	—	$	8,975

Accrued restructuring charges as of December 31, 2015							$	663
Total year to date charges, net (shown above)							8,975
Charges paid / settled, net							(8,020		)
Accrued restructuring charges as of December 31, 2016							$	1,618

We expect to make payment or settle the majority of the restructuring charges accrued as of December 31, 2016 during the first quarter of 2017.



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2015
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses (recoveries)	$	(376	)	$	257	$	—	$	(119	)
Employee related expenses	3,279			1,474		—		4,753
Total restructuring charges, net	$	2,903		$	1,731	$	—	$	4,634

Accrued restructuring charges as of December 31, 2014								$	1,645
Total year to date charges, net (shown above)								4,634
Charges paid / settled, net								(5,616		)
Accrued restructuring charges as of December 31, 2015								$	663



	Restructuring Charges / (Recoveries)
	As of and for the year ended December 31, 2014
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses	$	447	$	252	$	—	$	699
Employee related expenses	1,516		2,714		317		4,547
Total restructuring charges, net	$	1,963	$	2,966	$	317	$	5,246

Accrued restructuring charges as of December 31, 2013							$	3,063
Total year to date charges, net (shown above)							5,246
Charges paid / settled, net							(6,664		)
Accrued restructuring charges as of December 31, 2014							$	1,645

Restructuring Programs Summary

As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, the 2015 Announced Restructuring Program’s total cost may be recorded in 2015 and 2016. The amounts shown below reflect the total cost for that restructuring program.

During 2016, we initiated certain restructuring activities, under which we continued to simplify our business ("2016 Actions").

Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller

facilities.



	2016 Actions Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy		Advanced Flow Solutions		Total
Facility related expenses - incurred to date	$	708	$	94	$	802
Employee related expenses - incurred to date	2,476		1,181		3,657
Total restructuring related special charges - incurred to date	$	3,184	$	1,275	$	4,459

In July 2015, we announced the closure of one of the two Corona, California manufacturing facilities ("California

Restructuring"). Under this restructuring, we are reducing certain general, manufacturing and facility related expenses.



	California Restructuring Charges, net as of December 31, 2016
	Advanced Flow Solutions
Facility related expenses - incurred to date	$	3,700
Employee related expenses - incurred to date	800
Total restructuring related special charges - incurred to date	$	4,500

On February 18, 2015, we announced a restructuring action ("2015 Announced Restructuring"), under which we continued to simplify our businesses. Under this action, we reduced certain general, administrative and manufacturing related expenses primarily personnel related. The following table (in thousands) summarizes the total program costs for the 2015 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the fourth quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2015 Announced Restructuring action.



	2015 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	(382	)	$	257	$	—	$	(125	)
Employee related expenses - incurred to date	3,425			740		—		4,165
Total restructuring related charges - incurred to date	$	3,043		$	997	$	—	$	4,040

On April 22, 2014, we announced additional restructuring actions ("2014 Announced Restructuring"), under which we continued to simplify our businesses. Under this action, we reduced certain general and administrative expenses, including the reduction of certain management layers, and closing a number of smaller facilities. The following table (in thousands) summarizes the total program costs for the 2014 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2014 Announced Restructuring action.



	2014 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	(64	)	$	95	$	—	$	31
Employee related expenses - incurred to date	1,463			2,956		317		4,736
Total restructuring related charges - incurred to date	$	1,399		$	3,051	$	317	$	4,767

On August 1, 2013 and October 31, 2013, we announced restructuring actions associated with our Energy and Advanced Flow Solutions segments under which we simplified the manner in which we managed our businesses ("2013 Announced Restructuring"). Under these actions, we consolidated facilities, shifted expenses to lower cost regions, restructured certain non-strategic product lines, and also consolidated our group structure from three groups to two, reducing management layers and administrative expenses. The following table (in thousands) summarizes the total program cost for the 2013 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2014. We do not anticipate any additional restructuring charges to be incurred associated with the 2013 Announced Restructuring action.



	2013 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	2,117	$	473	$	—	$	2,590
Employee related expenses - incurred to date	2,945		1,519		—		4,464
Total restructuring related charges - incurred to date	$	5,062	$	1,992	$	—	$	7,054

Additional Restructuring Charges

In conjunction with the restructuring actions noted above, we incur certain costs, primarily related to inventory, that are recorded in cost of revenues instead of special and restructuring charges. Such restructuring-related amounts totaled $2.8 million, $9.4 million, and $8.0 million for the years ending December 31, 2016, 2015 and 2014, respectively, and are described further below.

During the first and fourth quarters of 2016, in connection with the restructuring of certain structural landing gear product lines, we recorded inventory related charges of less than $0.1 million, and $0.8 million respectively, within the Advanced

Flow Solutions segment. As of December 31, 2016, our remaining structural landing gear product line inventory balance is

$0.2 million, which we believe is recoverable based upon our net realizable value analysis.

During the first and second quarters of 2016, we recorded restructuring related inventory $1.9 million and $0.1 million respectively, associated with the closure of manufacturing operations and the exit of the gate, globe and check valves product line in Brazil. As of December 31, 2016, no inventory amounts remain on our balance sheet for the gate, globe, and check valves product line.

During the third and fourth quarters of 2015, we recorded restructuring related inventory charges of $6.4 million and $0.5 million, respectively, associated with the closure of manufacturing operations and the exit of the gate, globe and check valves product line in Brazil.

During the second quarter of 2015, we recorded restructuring related inventory charges of $0.2 million associated with the exit of our Energy segment cable protection product line.

During the second and fourth quarters of 2015, in connection with the restructuring of certain structural landing gear product lines, we recorded inventory related charges of $1.9 million, and $0.4 million, respectively, within the Advanced Flow Solutions segment.

During the second and third quarters of 2014, in connection with the restructuring of certain structural landing gear product lines, we recorded inventory related charges of $5.1 million and $2.9 million, respectively, within the Advanced Flow Solutions segment.

The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2016:



	Special Charges, net
	For the year ended December 31, 2016
	Energy		Advanced Flow Solutions			Corporate		Total
Acquisition related charges (recoveries)	$	—	$	(161	)	$	978	$	817
Brazil closure	2,920		—			2		2,922
Pension settlement	—		—			4,457		4,457
Total special charges, net	$	2,920	$	(161	)	$	5,437	$	8,196

The following table (in thousands) summarizes the total program costs for the 2015 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the fourth quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2015 Announced Restructuring action.



	2015 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy			Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	(382	)	$	257	$	—	$	(125	)
Employee related expenses - incurred to date	3,425			740		—		4,165
Total restructuring related charges - incurred to date	$	3,043		$	997	$	—	$	4,040

The following table (in thousands) summarizes the total program cost for the 2013 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2014. We do not anticipate any additional restructuring charges to be incurred associated with the 2013 Announced Restructuring action.



	2013 Announced Restructuring Charges / (Recoveries), net as of December 31, 2016
	Energy		Advanced Flow Solutions		Corporate		Total
Facility related expenses - incurred to date	$	2,117	$	473	$	—	$	2,590
Employee related expenses - incurred to date	2,945		1,519		—		4,464
Total restructuring related charges - incurred to date	$	5,062	$	1,992	$	—	$	7,054