RESTRUCTURING AND ASSET IMPAIRMENTS

During the third quarter of 2019, DynaEnergetics completed a series of capacity expansion initiatives at its plants in North America and Germany. The new capacity improved DynaEnergetics’ operating efficiencies and enabled the business to more effectively serve its global customer base. Capitalizing on its more efficient manufacturing footprint, DynaEnergetics ceased its operations in Tyumen, Siberia in September 2019. In conjunction with shutting down operations, DynaEnergetics recorded a non-cash asset impairment charge of $4,620 within “Restructuring expenses, net and asset impairments”, which was calculated by comparing the estimated fair value less costs to sell to the carrying value of the assets. DynaEnergetics also recorded $1,260 in severance charges within “Restructuring expenses, net and asset impairments” and a non-cash inventory write down of $630 recorded within “Cost of products sold” associated with the decision to cease operations in Siberia.

As of September 30, 2019, total DynaEnergetics Siberia’s assets classified as held for sale was $4,534. As necessary, we will continue to assess remaining Siberian assets for impairment in the fourth quarter of 2019. Once the entity is substantially liquidated, we will incur additional restructuring expenses related to the reclassification of cumulative currency translation losses, which approximated $8 million as of September 30, 2019.

During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France. During the third quarter of 2018, final approval of the proposed measures was granted by the local workers council, in accordance with applicable French law. NobelClad completed the closure of the Rivesaltes production facility in the fourth quarter of 2018 but is maintaining its sales and administrative office in France. During the second quarter of 2019, NobelClad sold its production facility and related assets and recognized a gain of $519. NobelClad also recorded an additional accrual of $712 for known and probable severance liabilities related to employees terminated as part of closing the manufacturing operations in France. The additional severance accrual was recorded based, in part, on a successful appeal of severance benefits by some terminated employees during the second quarter of 2019.

Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses, net and asset impairments” line item in our Condensed Consolidated Statements of Operations:



	Three months ended September 30, 2019
	Severance		Asset impairment		Contract Termination Costs			Equipment Moving Costs		Other Exit Costs		Total
NobelClad	$	2	$	—	$	(4	)	$	7	$	13	$	18
DynaEnergetics	1,260		4,620		—			—		—		5,880
Total	$	1,262	$	4,620	$	(4	)	$	7	$	13	$	5,898



	Nine months ended September 30, 2019
	Severance		(Gain on asset disposal) / Asset impairment			Contract Termination Costs		Equipment Moving Costs		Other Exit Costs		Total
NobelClad	$	714	$	(636	)	$	39	$	234	$	69	$	420
DynaEnergetics	1,260		4,620			—		—		—		5,880
Total	$	1,974	$	3,984		$	39	$	234	$	69	$	6,300



	Three months ended September 30, 2018
	Severance		Equipment Moving Costs		Other Exit Costs		Total
NobelClad	$	65	$	119	$	8	$	192



	Nine months ended September 30, 2018
	Severance		Equipment Moving Costs		Other Exit Costs		Total
NobelClad	$	300	$	119	$	134	$	553

During the nine months ended September 30, 2019, the changes to the restructuring liability associated with these programs is summarized below:



	December 31, 2018		Net expense (1)		Payments and Other Adjustments			September 30, 2019
Severance	$	1,105	$	1,974	$	(930	)	$	2,149
Contract termination costs	—		39		(39		)	—
Equipment moving costs	8		234		(241		)	1
Other exit costs	42		69		(108		)	3
Total	$	1,155	$	2,316	$	(1,318	)	$	2,153

(1) Excluding asset impairment related to DynaEnergetics Siberia and gain on asset disposal related to NobelClad France.