Restructuring and Other Charges

3 Months Ended

Mar. 31, 2020

Restructuring And Related Activities [Abstract]

20.	Restructuring and Other Charges

In response to changing market demands, including capital constraints of oil and gas producers that have impacted production growth, growth in proppant supply in excess of demand, and shift of demand from high-quality proppant to more cost-effective proppant, we idled operations and reduced capacities at facilities serving the Energy segment. We did not allocate restructuring charges to our Energy segment.

Additionally, in connection with the Merger, we initiated restructuring activities to achieve cost synergies from our combined operations. We did not allocate these Merger-related restructuring charges to either of our business segments.

The following table presents a summary of restructuring charges for the three months ended March 31, 2019:

	Merger-related		Idled facilities		Total
	(in thousands)
Three Months Ended March 31, 2019
Severance and relocation costs	$	1,921	$	-	$	1,921
Contract termination costs		-		81		81
Total restructuring charges	$	1,921	$	81	$	2,002

The following table presents our restructuring reserve activity during 2020 and 2019:

	Merger-related			Idled facilities			Total
	(in thousands)
Accrued restructuring charges
Balances at December 31, 2018	$	15,578		$	3,974		$	19,552
Charges		1,921			81			2,002
Cash payments		(2,707	)		(579	)		(3,286	)
Balances at March 31, 2019	$	14,792		$	3,476		$	18,268

Balances at December 31, 2019		7,735			477			8,212
Cash payments		(4,498	)		(221	)		(4,719	)
Balances at March 31, 2020	$	3,237		$	256		$	3,493

The restructuring reserve is included in accrued expenses on the Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019.

Restructuring and other charges on the Condensed Consolidated Statements of Loss for the three months ended March 31, 2020 includes other charges related to consulting and strategic costs of $5.5 million. These other charges were recorded in Accrued expenses on the Condensed Consolidated Balance Sheet but not included in the above tables.

As a response to changing market conditions the Company has taken further action in the second quarter of 2020, which includes the idling of our Kermit and Utica facility, reducing productive capacity at several facilities, and reducing headcount across the Company.