Impairment and Restructuring Charges

9 Months Ended

Sep. 26, 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 nine months ended September 26, 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 nine months ended September 28, 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 September 26, 2020
Severance costs	$	569	$	445	$	359	$	—	$	1,373
Other exit costs	—		2		(623)		(33)		(654)
Total restructuring costs	569		447		(264)		(33)		719
Impairments	451		59		90		—		600
Total impairment and restructuring charges	$	1,020	$	506	$	(174)	$	(33)	$	1,319
Three Months Ended September 28, 2019
Severance costs	$	6	$	2,022	$	1,726	$	44	$	3,798
Other exit costs	16		236		814		(13)		1,053
Total restructuring costs	22		2,258		2,540		31		4,851
Impairments	1,111		—		1,973		—		3,084
Total impairment and restructuring charges	$	1,133	$	2,258	$	4,513	$	31	$	7,935


(amounts in thousands)	North America		Europe		Australasia		Corporate and Unallocated Costs		Total Consolidated
Nine Months Ended September 26, 2020
Severance costs	$	2,022	$	1,471	$	542	$	(10)	$	4,025
Other exit costs	(1)		235		227		(31)		430
Total restructuring costs	2,021		1,706		769		(41)		4,455
Impairments	1,208		954		154		3,359		5,675
Total impairment and restructuring charges	$	3,229	$	2,660	$	923	$	3,318	$	10,130
Nine Months Ended September 28, 2019
Severance costs	$	2,166	$	3,693	$	3,262	$	1,005	$	10,126
Other exit costs	50		356		1,227		(40)		1,593
Total restructuring costs	2,216		4,049		4,489		965		11,719
Impairments	3,065		161		2,443		—		5,669
Total impairment and restructuring charges	$	5,281	$	4,210	$	6,932	$	965	$	17,388

Short-term restructuring accruals are recorded in accrued expenses and totaled $1.5 million and $6.1 million as of September 26, 2020 and December 31, 2019, respectively. Long-term restructuring accruals are recorded in deferred credits and other liabilities and totaled $0.2 million and $1.0 million as of September 26, 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
September 26, 2020
Severance costs	$	5,314	$	4,025	$	(8,023)	$	1,316
Other exit costs	1,729		430		(1,814)		345
Total	$	7,043	$	4,455	$	(9,837)	$	1,661
September 28, 2019
Severance costs	$	5,353	$	10,126	$	(11,067)	$	4,412
Other exit costs	3,287		1,593		(2,009)		2,871
Total	$	8,640	$	11,719	$	(13,076)	$	7,283