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Restructuring And Optimization Programs
9 Months Ended
Sep. 30, 2020
Restructuring And Optimization Programs [Abstract]  
Restructuring And Optimization Programs 14.    Restructuring and Optimization Programs

Total restructuring charges were $2.4 million and $12.2 million for the three and nine months ended September 30, 2020, respectively, and $2.1 million and $7.9 million for the three and nine months ended September 30, 2019, respectively. As discussed in Note 4, our Tile Coatings business was classified as held-for-sale during the fourth quarter of 2019. As such, there were additional restructuring charges of $0.3 million and $2.3 million for the three and nine months ended September 30, 2020, respectively, and $4.2 million and $10.8 million for the three and nine months ended September 30, 2019, respectively classified as Net income from discontinued operations, net of income taxes.

Organizational Optimization Plan

In conjunction with the pending sale of the Tile Coatings business, discussed in Note 4, we developed our Organizational Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure in anticipation of the pending sale. As a result of these actions, the Company expects to incur total charges of approximately $1.5 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized throughout the remainder of 2020 and 2021. Charges associated with the program were $1.2 million for the three and nine months ended September 30, 2020.

Americas Manufacturing Optimization Plan

In the second quarter of 2019, we developed our Americas Manufacturing Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. The Americas Manufacturing Optimization Plan is focused on the construction of a new manufacturing center of excellence located in Villagran, Mexico. We are in the process of consolidating two plants located in the United States and two sites in Latin America into the expanded Villagran location. As a result of these actions, the Company expects to incur total charges of approximately $8.7 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized within the next 12 months. Charges associated with the program were $1.1 million for the nine months ended September 30, 2020, and $1.9 million and $5.8 million for the three and nine months ended September 30, 2019, respectively.

Global Optimization Plan

The program involves our global operations and certain functions and initiatives to increase operational efficiencies, some of which is associated with integration of our recent acquisitions. Actions associated with the Global Optimization Plan were substantially completed during 2020, and as such, we do not anticipate material charges related to this plan for the remainder of 2020. Charges associated with the program were $1.2 million and $9.9 million for the three and nine months ended September 30, 2020, respectively, and $0.2 million and $2.1 million for the three and nine months ended September 30, 2019, respectively.

The charges associated with these programs are further summarized below.

Employee

Other

(Dollars in thousands)

Severance

Costs

Total

Balances at December 31, 2019

$

747

$

1,492

$

2,239

Restructuring charges

9,792

2,439

12,231

Cash payments

(4,236)

(736)

(4,972)

Non-cash items

280

98

378

Balances at September 30, 2020

$

6,583

$

3,293

$

9,876

We expect to make cash payments to settle the remaining liability for employee severance benefits and other costs over the next twelve months, except where legal or contractual obligations would require it to extend beyond that period.