Impairment and Restructuring Charges

3 Months Ended

Mar. 28, 2020

Restructuring and Related Activities [Abstract]

During 2020 and 2019, we engaged in restructuring activities intended to improve productivity, operating margins, and working capital levels. Restructuring costs primarily relate to workforce reductions, repositioning of management structure and costs associated with plant consolidations and closures.

Asset impairment charges were recorded in addition to our restructuring costs. In the three months ended March 28, 2020, impairment charges primarily related to capitalized costs of certain ERP modules due to delays in implementation and uncertainty of their future use. In the three months ended March 30, 2019, impairment charges were primarily related to ROU assets and property and equipment held by operations impacted by restructuring.

The following table summarizes the restructuring charges for the periods indicated:



(amounts in thousands)	North America			Europe		Australasia		Corporate and Unallocated Costs			Total Consolidated
Three Months Ended March 28, 2020
Severance costs	$	944		$	911	$	47	$	(10	)	$	1,892
Other exit costs	(1		)	195		217		(12		)	399
Total restructuring costs	943			1,106		264		(22		)	2,291
Impairments	—			895		—		3,359			4,254
Total impairment and restructuring charges	$	943		$	2,001	$	264	$	3,337		$	6,545
Three Months Ended March 30, 2019
Severance costs	$	531		$	1,148	$	199	$	—		$	1,878
Other exit costs	(4		)	—		224		(13		)	207
Total restructuring costs	527			1,148		423		(13		)	2,085
Impairments	1,431			161		42		—			1,634
Total impairment and restructuring charges	$	1,958		$	1,309	$	465	$	(13	)	$	3,719

Short-term restructuring accruals are recorded in accrued expenses and totaled $4.9 million and $6.1 million as of March 28, 2020 and December 31, 2019, respectively. Long-term restructuring accruals are recorded in deferred credits and other liabilities and totaled $0.8 million and $1.0 million as of March 28, 2020 and December 31, 2019, 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
March 28, 2020
Severance costs	$	5,314	$	1,892	$	(3,450	)	$	3,756
Other exit costs	1,729		399		(156		)	1,972
Total	$	7,043	$	2,291	$	(3,606	)	$	5,728
March 30, 2019
Severance costs	$	5,353	$	1,878	$	(4,003	)	$	3,228
Other exit costs	3,287		207		(411		)	3,083
Total	$	8,640	$	2,085	$	(4,414	)	$	6,311

The prior period information has been reclassified to conform to current period presentation.