XML 30 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Restructuring (Notes)
 6 Months Ended
Jun. 30, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] Restructuring
On January 21, 2020, the Company committed to a cost reduction plan to reduce overall operating expenses, including the reduction of outside services, facility fixed costs, and corporate staffing costs (the “Cost Reduction Plan”). These cost reductions
are designed to right-size general and administrative spending and are consistent with Phase II of the Company’s previously announced self-help program.
The Company eliminated 46 general and administrative, primarily corporate positions as part of the Cost Reduction Plan during the first half of 2020. The Company has offered one-time termination benefits to the affected employees including cash severance payments, health care, and outplacement services. The Company paid $0.7 million for these costs for the six months ended June 30, 2020. In addition to the actions described below, the Company estimates approximately $0.9 million of additional costs in 2020.
On February 2, 2020, the Company announced to its employees at the Bel-Ray facility in Wall Township, New Jersey, which is included in our Specialty Products segment that it would cease production and close the facility in the second quarter of 2020. This action resulted in the elimination of 49 positions. The Company expects to incur approximately $6.0 million in total exit costs, fixed asset impairments, termination benefits, and severance costs associated with the closure. The majority of these costs are expected to result in cash expenditures that will be paid out by the end of the fourth quarter of 2020.
Charges related to restructuring are reflected in the Cost of sales, Selling, and General and administrative lines of the unaudited condensed consolidated statements of operations. The Company recorded $1.3 million and $3.1 million, respectively, in Cost of sales for the three and six months ended June 30, 2020. The Company recorded $0.6 million and $0.9 million, respectively, to the Selling and General and administrative lines of the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2020. Fixed asset impairments are reflected in the Loss on impairment and disposal of assets line of the unaudited condensed consolidated statements of operations.
The following table displays the reconciliation of the beginning and ending liability balances (in millions):
 
Employee Termination Benefits
 
Exit Costs
 
Total
Balance at December 31, 2019
$
—

 
$
—

 
$
—

Charges to restructuring
0.8

 
1.3

 
2.1

Cash Payments and other
(0.4
)
 
(1.1
)
 
(1.5
)
Balance at March 31, 2020
$
0.4

 
$
0.2

 
$
0.6

Charges to restructuring
0.9

 
1.0

 
1.9

Cash Payments and other
(0.8
)
 
(0.7
)
 
(1.5
)
Balance at June 30, 2020
$
0.5

 
$
0.5

 
$
1.0