Restructuring

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Restructuring

Restructuring

On January 17, 2019, Cooper Tire Europe, a wholly owned subsidiary of the Company, committed to the planned cessation of passenger car and light truck tire production ("light vehicle tire production") at its Melksham, U.K. facility, which is included in the International Segment. This initiative is expected to result in charges to 2019 pre-tax earnings of approximately $8 to $10 million, of which 15 to 25 percent are expected to be non-cash charges. Approximately 300 roles were eliminated at the site. Cooper Tire Europe will obtain light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles will remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, a materials business, Cooper Tire Europe headquarters,

sales and marketing, and the Europe Technical Center. Phasing out of light vehicle tire production was substantially completed in the third quarter of 2019.

For the three and nine month periods ended September 30, 2019, the Company recorded restructuring expense of $811 and $7,442, made up of employee severance, asset write-downs and other costs. In the third quarter, the Company released certain of its severance accruals due to employees separating from the Company prior to meeting the requirements for payment. At September 30, 2019, the Company's accrued restructuring balance is $381, related largely to employee severance costs.

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Employee severance (reversals) costs	$	(411	)	$	5,308
Asset write-downs & other costs	1,222			2,134
Total restructuring expense	$	811		$	7,442
Beginning balance of accrued restructuring - severance	$	4,484		$	—
Release of severance accrual	(411		)	5,308
Payment of severance costs	(4,133		)	(5,368		)
Beginning balance of accrued restructuring - other	125			—
Additional other accrual	380			683
Payment of other costs	(64		)	(242		)
Ending balance of total accrued restructuring	$	381		$	381

In addition to the costs classified as restructuring expense, the Company incurred additional costs of $363 and $677 for the three and nine month periods ended September 30, 2019, respectively, as a result of Cooper Tire Europe's decision to cease light vehicle tire production at the Melksham facility. These additional costs relate to professional fees associated with the Company's evaluation of its legal entity structure moving forward, as well as other matters, and are included within selling, general and administrative expense for the three and nine months periods ended September 30, 2019. These costs, as well as estimates for similar types of costs in future periods, are included in the $8 to $10 million overall estimate of costs related to the Melksham decision.