INTEGRATION AND RESTRUCTURING

12 Months Ended

Dec. 31, 2020

INTEGRATION AND RESTRUCTURING

INTEGRATION AND RESTRUCTURING

NOTE 7 – INTEGRATION AND RESTRUCTURING

On July 30, 2019, the Company internally announced a plan to integrate three operating segments with three other operating segments (Project Synchronize or the Plan), which reduced the number of operating segments from 16 to 13. On September 4, 2019, the Company announced a comprehensive restructuring plan (Project Pivot) intended to reduce its cost base, right size its organization and management team and increase and accelerate its previously announced operational improvement goals.  The integration and restructuring costs consist of asset impairments, employee-related costs, and other transition and termination costs related to restructuring activities. Employee-related costs include severance, tax preparation, and relocation costs, which are accounted for in accordance with ASC 420 Exit or Disposal Cost Obligations. Other transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. Costs are reported in restructuring charges in the consolidated statements of operations and comprehensive income (loss). The obligation related to employee separation costs is included in other current liabilities in the consolidated balance sheets.

During the first quarter of 2020, the Company made the decision to close certain of the Aveda terminals and wind down those operations. The Company recorded $8.2 million of restructuring and exit costs in connection with the closure of these terminals in the year ended December 31, 2020 and the Company does not expect any future material restructuring and exit costs associated with the closure.

On March 10, 2020, the Company announced a plan to integrate three operating segments with three other operating segments (Phase II of  the Plan). Phase II of the Plan was initially expected to be significantly completed by June 30, 2020, however, due to uncertainties and changes in focus caused by the COVID-19 pandemic, the Company delayed and reevaluated Phase II of the Plan and reduced the planned number of integrations from three to two operating segments.  As of December 31, 2020, one of these integrations had been completed, and the Company expects to complete the remaining integration in late 2021.

The Company recorded $1.3 million and $8.4 million of integration and restructuring expenses in connection with the Plan and Project Pivot in the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, we have incurred a cumulative total of $9.7 million in integration and restructuring costs since inception of Phase I and II of the Plan.

The following table summarizes the integration and restructuring costs as of December 31, 2020 (in millions):

	Severance		Operating
	and		Lease		Fixed Asset
	Other Payroll		Termination		Impairment		Other		Total
Specialized Solution
Balance, December 31, 2019	$	—	$	—	$	—	$	—	$	—
Costs accrued		0.2		—		—		0.4		0.6
Amounts paid or charged		(0.2)		—		—		(0.4)		(0.6)
Specialized Solution balance at December 31, 2020		—		—		—		—		—
Flatbed Solution
Balance, December 31, 2019	$	—	$	—	$	—	$	—	$	—
Costs accrued		0.3		—		0.2		0.1		0.6
Amounts paid or charged		(0.3)		—		(0.2)		(0.1)		(0.6)
Flatbed Solution balance at December 31, 2020		—		—		—		—		—
Corporate
Balance, December 31, 2019	$	1.8	$	—	$	—	$	—	$	1.8
Costs accrued		0.1		—		—		—		0.1
Amounts paid or charged		(1.1)		—		—		—		(1.1)
Adjustments		(0.7)		—		—		—		(0.7)
Corporate balance at December 31, 2020		0.1		—		—		—		0.1
Consolidated
Balance, December 31, 2019	$	1.8	$	—	$	—	$	—	$	1.8
Costs accrued		0.6		—		0.2		0.5		1.3
Amounts paid or charged		(1.6)		—		(0.2)		(0.5)		(2.3)
Adjustments		(0.7)		—		—		—		(0.7)
Consolidated balance at December 31, 2020	$	0.1	$	—	$	—	$	—	$	0.1

The following table summarizes the restructuring and exit costs for the Aveda closed terminals as of December 31, 2020 (in millions):

	Severance		Operating
	and		Lease		Fixed Asset
	Other Payroll		Termination		Impairment		Other		Total
Specialized Solution
Costs accrued	$	4.4	$	3.0	$	—	$	0.8	$	8.2
Amounts paid or charged		(4.4)		(3.0)		—		(0.8)		(8.2)
Specialized Solution balance at December 31, 2020	$	—	$	—	$	—	$	—	$	—