RESTRUCTURING COSTS

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

RESTRUCTURING COSTS

During the three and nine months ended September 30, 2020, the Corporation executed restructuring activities across all of its segments to support its ongoing effort of improving capacity utilization and operating efficiency. These restructuring activities, which include workforce reductions and consolidation of facilities, resulted in $11 million and $29 million of pre-tax charges for the three and nine months ended September 30, 2020. Pre-tax restructuring charges for the year ending December 31, 2020 are expected to be $35 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 $40 million annually.

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

In thousands	Restructuring Accrual as of December 31, 2019		Provision		Cash Payments		Restructuring Accrual as of September 30, 2020
Commercial/Industrial
Severance	$	—	$	9,028	$	(3,939)	$	5,089
Facility closure and other exit costs	—		2,496		(2,147)		349
Total Commercial/Industrial	$	—	$	11,524	$	(6,086)	$	5,438
Defense
Severance	$	—	$	3,015	$	(2,576)	$	439
Facility closure and other exit costs	—		41		(41)		—
Total Defense	$	—	$	3,056	$	(2,617)	$	439
Power
Severance	$	—	$	3,001	$	(1,263)	$	1,738
Facility closure and other exit costs	—		710		(710)		—
Total Power	$	—	$	3,711	$	(1,973)	$	1,738
Consolidated
Severance	$	—	$	15,044	$	(7,778)	$	7,266
Facility closure and other exit costs	—		3,247		(2,898)		349
Total consolidated	$	—	$	18,291	$	(10,676)	$	7,615

A reconciliation of total pre-tax restructuring charges is as follows:

	Affected line item in the Condensed Consolidated Statement of Earnings
		Three Months Ended		Nine Months Ended
(In thousands)		September 30, 2020		September 30, 2020
Inventory write-downs	Cost of product sales	$	2,625	$	7,815
Severance, facility closure, and other exit costs	Restructuring expenses	7,690		18,291
Property, plant, and equipment & operating lease right of use asset impairments	Restructuring expenses	851		2,439
		$	8,541	$	20,730
Total restructuring charges	Earnings before income taxes	$	11,166	$	28,545

There were no such comparable charges for the three and nine months ended September 30, 2019.