Impairment and Restructuring Charges

6 Months Ended

Jun. 27, 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 six months ended June 27, 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 and six months ended June 29, 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 June 27, 2020
Severance costs	$	509	$	115	$	136	$	—		$	760
Other exit costs	—		38		633		14			685
Total restructuring costs	509		153		769		14			1,445
Impairments	757		—		64		—			821
Total impairment and restructuring charges	$	1,266	$	153	$	833	$	14		$	2,266
Three Months Ended June 29, 2019
Severance costs	$	1,629	$	523	$	1,337	$	961		$	4,450
Other exit costs	38		121		189		(14		)	334
Total restructuring costs	1,667		644		1,526		947			4,784
Impairments	523		—		427		—			950
Total impairment and restructuring charges	$	2,190	$	644	$	1,953	$	947		$	5,734



(amounts in thousands)	North America			Europe		Australasia		Corporate and Unallocated Costs			Total Consolidated
Six Months Ended June 27, 2020
Severance costs	$	1,453		$	1,026	$	183	$	(10	)	$	2,652
Other exit costs	(1		)	233		850		2			1,084
Total restructuring costs	1,452			1,259		1,033		(8		)	3,736
Impairments	757			895		64		3,359			5,075
Total impairment and restructuring charges	$	2,209		$	2,154	$	1,097	$	3,351		$	8,811
Six Months Ended June 29, 2019
Severance costs	$	2,159		$	1,671	$	1,537	$	961		$	6,328
Other exit costs	34			121		413		(27		)	541
Total restructuring costs	2,193			1,792		1,950		934			6,869
Impairments	1,954			161		469		—			2,584
Total impairment and restructuring charges	$	4,147		$	1,953	$	2,419	$	934		$	9,453

Short-term restructuring accruals are recorded in accrued expenses and totaled $4.5 million and $6.1 million as of June 27, 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 June 27, 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
June 27, 2020
Severance costs	$	5,314	$	2,652	$	(4,770	)	$	3,196
Other exit costs	1,729		1,084		(752		)	2,061
Total	$	7,043	$	3,736	$	(5,522	)	$	5,257
June 29, 2019
Severance costs	$	5,353	$	6,328	$	(8,258	)	$	3,423
Other exit costs	3,287		541		(849		)	2,979
Total	$	8,640	$	6,869	$	(9,107	)	$	6,402