Restructuring Costs

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]


5.			Restructuring Costs

On March 1, 2016, as part of a strategic review of organizational structure and operations, the Company announced a global cost reduction and restructuring program (the “2016 program”). The 2016 program, as used herein, refers to costs related to various restructuring activities across business segments. This includes entering into severance and termination agreements with employees and footprint rationalization activities, including exit and relocation costs for the consolidation and closure of plant facilities and lease termination costs. These activities were ongoing throughout the years ended December 31, 2017, 2018 and the six months ended June 28, 2019 and were considered substantially complete as of June 28, 2019. As the 2016 program was deemed to be complete for identification of new actions as of December 31, 2018, all costs incurred during 2019 under the program related to completion of actions previously identified prior to closure of the program.

In 2019, restructuring costs primarily include activities which align with our strategic initiatives of continued footprint rationalization and margin expansion. Such activities are typically identified by management as part of the annual strategic planning process, with priority assigned to those that maximize the financial return for the Company. In the first quarter of 2019, additional restructuring activities resulting in one-time employee termination benefits were identified upon a review of the Company’s organizational structure resulting in certain strategic leadership changes as well as in response to end market decline in the industrial segment. Additionally, with the acquisition of Schaffner Manufacturing Company, Inc. on April 1, 2019, further footprint rationalization activities were identified during the due diligence process which were executed upon throughout the remainder of 2019. The Company anticipates continuing to identify future actions including entering into severance and termination agreements with employees and footprint rationalization activities, including exit and relocation costs for the consolidation and closure of plant facilities. As these are not part of the 2016 program, such costs are presented separately below in “Other Restructuring Actions.”

Restructuring costs are presented separately on the consolidated statements of operations.

2016 Program

The following table presents the restructuring costs recognized by the Company under the 2016 program by reportable segment. The other costs incurred under the 2016 program for the year ended December 31, 2019 primarily include charges related to the closure of a U.K. plant within the engineered components segment. The other costs incurred under the 2016 program for the year ended December 31, 2018 primarily include charges related to the closure of the U.K. plant within the engineered components segment, partially offset by a reduction in expense as a result of the statute of limitations expiring on unasserted employment matter claims in Brazil within the industrial segment. The other costs incurred under the 2016 program for the year ended December 31, 2017 primarily include charges related to the exit costs for the wind down of the industrial segment’s facility in Brazil and the consolidation of two U.S. plants within the industrial segment. The 2016 Program is considered complete and no additional costs are expected to be incurred as part of the program.


2016 Program	Industrial		Engineered Components		Corporate		Total
Restructuring charges - year ended December 31, 2019:
Severance costs	$	(35)	$	31	$	164	$	160
Lease termination costs ⁽¹⁾	—		—		—		—
Other costs	40		1,356		—		1,396
Total	$	5	$	1,387	$	164	$	1,556

Restructuring charges - year ended December 31, 2018:
Severance costs	$	314	$	235	$	—	$	549
Lease termination costs ⁽¹⁾	(4)		—		—		(4)
Other costs	165		167		—		332
Total	$	475	$	402	$	—	$	877

Restructuring charges - year ended December 31, 2017:
Severance costs	$	1,178	$	(17)	$	(9)	$	1,152
Lease termination costs ⁽¹⁾	88		—		—		88
Other costs	1,235		—		—		1,235
Total	$	2,501	$	(17)	$	(9)	$	2,475

The following table presents the cumulative restructuring costs recognized by the Company under the 2016 program by reportable segment. The 2016 program began in the first quarter of 2016 and as such, the cumulative restructuring charges represent the cumulative charges incurred since the inception of the 2016 program through completion in June 2019.


	Industrial		Engineered Components		Corporate		Total
Cumulative restructuring charges - 2016 Program:
Severance costs	$	4,744	$	325	$	752	$	5,821
Lease termination costs ⁽¹⁾	428		—		—		428
Other costs	2,443		1,523		—		3,966
Total	$	7,615	$	1,848	$	752	$	10,215

The following table represents the restructuring liabilities for the 2016 program:


	Severance costs		Lease termination costs ⁽¹⁾		Other costs		Total
Balance - December 31, 2017	$	901	$	76	$	763	$	1,740
Current period restructuring charges	549		(4)		332		877
Cash payments	(954)		(70)		(1,031)		(2,055)
Foreign currency impact	(39)		(2)		(40)		(81)
Balance - December 31, 2018	$	457	$	—	$	24	$	481
Current period restructuring charges	160		—		1,396		1,556
Cash payments	(615)		—		(1,416)		(2,031)
Foreign currency impact	(2)		—		(4)		(6)
Balance - December 31, 2019	$	—	$	—	$	—	$	—

(1) Commencing on January 1, 2019, the Company recognizes lease termination costs in accordance with ASC 842 which addresses termination costs related to both finance and operating lease obligations. Prior to January 1, 2019, the Company recognized such costs in accordance with ASC 420, “Exit and Disposal Cost Obligations” related to operating leases. Prior period results continue to be reported under the accounting standards in effect for those periods.

At December 31, 2018, the restructuring liabilities related to the 2016 program severance costs were classified as accrued compensation and employee benefits and the other costs were classified as other current liabilities on the consolidated balance sheets.

Other Restructuring Actions

The following table presents the restructuring costs recognized by the Company for other restructuring actions by reportable segment. Based on the actions identified to date, the Company expects to incur other restructuring costs of approximately $1.4 million in the future. During the year ended December 31, 2019, other costs included costs to consolidate a Schaffner facility in the industrial segment and costs to vacate a facility in the engineered components segment.


Other Restructuring Actions	Industrial		Engineered Components		Corporate		Total
Restructuring charges - year ended December 31, 2019:
Severance costs	$	1,550	$	31	$	(2)	$	1,579
Other costs	446		373		—		819
Total	$	1,996	$	404	$	(2)	$	2,398

The following table represents the restructuring liabilities for other restructuring actions:


	Severance costs		Other costs		Total
Balance - December 31, 2018	$	—	$	—	$	—
Current period restructuring charges	1,579		819		2,398
Cash payments	(858)		(775)		(1,633)
Foreign currency translation adjustments	(4)		—		(4)
Balance - December 31, 2019	$	717	$	44	$	761

At December 31, 2019, the restructuring liabilities related to other restructuring severance costs were classified as accrued compensation and employee benefits and the other costs were classified as other current liabilities on the consolidated balance sheets.