XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Impairment and Restructuring Charges
 6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Impairment and Restructuring Charges Impairment and Restructuring Charges

Closure costs and impairment charges for operations not qualifying as discontinued operations are classified as impairment and restructuring charges in our unaudited consolidated statements of operations.

In the second quarter of 2018, we incurred impairment and restructuring costs of $2.5 million, primarily due to a $2.4 million charge resulting from exiting several facilities in our Australasia segment and charges related to personnel restructuring of $0.7 million in our Europe and Corporate segments, offset by a favorable impact of $0.6 million in the North America segment primarily related to a reduction in reserve for an early lease termination. In the second quarter of 2017, we incurred impairment and restructuring costs of $0.6 million, primarily related to restructuring in our Europe segment.

In the first quarter of 2018, we incurred impairment and restructuring costs of $3.0 million, including $2.9 million for plant consolidations in Canada and Australia, $1.5 million for lease termination costs and reduction in workforce in the U.S. and $0.7 million of other costs offset by $2.1 million of reduction in expense due to a favorable tax ruling in the U.S. related to a prior divestiture. In the first quarter of 2017, we incurred impairment and restructuring costs of $1.2 million, primarily related to restructuring in our Europe segment.

The table below summarizes the amounts included in impairment and restructuring charges in the accompanying unaudited consolidated statements of operations:
 
Three Months Ended
 
Six Months Ended
(amounts in thousands)
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Impairments
$
80

 
$
—

 
$
716

 
$
—

Restructuring charges, net of fair value adjustment gains
2,433

 
554

 
4,771

 
1,756

Total impairment and restructuring charges
$
2,513

 
$
554

 
$
5,487

 
$
1,756



Short-term restructuring accruals are recorded in accrued expenses and totaled $5.0 million and $7.2 million as of June 30, 2018 and December 31, 2017, respectively. Long-term restructuring accruals are recorded in deferred credits and other liabilities and totaled $1.7 million and $3.9 million as of June 30, 2018 and December 31, 2017, respectively.

The following is a summary of the restructuring accruals recorded and charges incurred:
(amounts in thousands)
Beginning
Accrual
Balance
 
Additions
Charged to
Expense
 
Payments
or
Utilization
 
Ending
Accrual
Balance
June 30, 2018
 
 
 
 
 
 
 
Severance and sales restructuring costs
$
7,232

 
$
3,124

 
$
(6,954
)
 
$
3,402

Disposal of property and equipment
—

 
289

 
(289
)
 
—

Lease obligations and other
3,807

 
1,358

 
(1,894
)
 
3,271

Total
$
11,039

 
$
4,771

 
$
(9,137
)
 
$
6,673

July 1, 2017
 
 
 
 
 
 
 
Severance and sales restructuring costs
$
836

 
$
993

 
$
(1,163
)
 
$
666

Disposal of property and equipment
—

 
113

 
(113
)
 
—

Lease obligations and other
4,183

 
650

 
(1,105
)
 
3,728

Total
$
5,019

 
$
1,756

 
$
(2,381
)
 
$
4,394