REORGANIZATION

3 Months Ended

Mar. 31, 2022

Restructuring And Related Activities [Abstract]

REORGANIZATION

4. REORGANIZATION

On February 22, 2022, we commenced the process of closing our Phoenix aluminum manufacturing facility (the “Phoenix Facility”), shifting related manufacturing to both our Savannah and Calgary aluminum manufacturing facilities. Additionally, we announced our intention to eliminate a portion of our salaried workforce including manufacturing and office positions along with other cost reduction initiatives. The closure of the Phoenix Facility is expected to be substantially completed in the second quarter of 2022.  The Company did not impair its Right of Use assets associated with the Phoenix Facility as the Company expects to be able to sublease the Phoenix Facility and recover the $5.1 million of contractual lease commitments.

Reorganization costs incurred in the quarter of $3.7 million include $3.1 million related to termination benefits, $0.1 million associated with the closure of the Phoenix Facility, and $0.5 million of other costs. Of the amount expensed, $1.6 million was paid and $1.9 million of termination benefits and $0.2 million of other costs were included in accounts payable and accrued liabilities at March 31, 2022. We anticipate a further $4.4 million of costs in the second quarter of 2022, as the Company incurred a $3.1 million charge for incremental insurance on change of control of the board on April 26, 2022.

The Company accelerated the depreciation of certain items of property, plant and equipment and capitalized software associated with these decisions resulting in an additional $1.1 million of depreciation and amortization incurred in the quarter.