RESTRUCTURING COSTS

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring Costs

RESTRUCTURING COSTS

During the three months ended March 31, 2020, the Corporation initiated restructuring activities across all of its segments to support the ongoing effort of improving capacity utilization and operating efficiency. These restructuring activities, which include workforce reductions and consolidation of facilities, resulted in $3 million of pre-tax charges for the three months ended March 31, 2020, inclusive of approximately $1 million of inventory write-downs classified within "Cost of product sales" in the Condensed Consolidated Statement of Earnings. Pre-tax restructuring charges for the year ending December 31, 2020 are expected to be $25 million to $30 million. The Company anticipates that these actions, which are expected to be substantially completed by the end of 2020, will result in total cost savings of approximately $20 million annually.

The following tables summarize the respective accrual balances related to these restructuring activities:

	Restructuring Accrual						Restructuring Accrual
In thousands	as of December 31, 2019		Provision		Cash Payments		as of March 31, 2020
Commercial/Industrial
Severance	$	—	$	318	$	—	$	318
Facility closure and other exit costs	—		284		(284)		—
Total Commercial/Industrial	$	—	$	602	$	(284)	$	318
Defense
Severance	$	—	$	799	$	(267)	$	532
Facility closure and other exit costs	—		—		—		—
Total Power	$	—	$	799	$	(267)	$	532
Power
Severance	$	—	$	117	$	(100)	$	17
Facility closure and other exit costs	—		62		(14)		48
Total Power	$	—	$	179	$	(114)	$	65
Consolidated
Severance	$	—	$	1,234	$	(367)	$	867
Facility closure and other exit costs	—		346		(298)		48
Total consolidated	$	—	$	1,580	$	(665)	$	915