Restructuring Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Note Q – Restructuring Charges

On May 6, 2020, the Company announced that it was closing its headquarter office in El Dorado, Arkansas, its office in Calgary, Alberta, and consolidating all worldwide staff activities to its existing office location in Houston, Texas. As a result of this decision, certain directly attributable costs and charges have been recognized and reported as Restructuring charges as part of net income during the three and nine months ended September 30, 2020. These costs include severance, relocation, IT costs, pension curtailment charges and a write-off of the right of use asset lease associated with the Canada office. Further, the office building in El Dorado and two airplanes are classified as held for sale as of September 30, 2020. Subsequent to period end, one of the planes has been sold. All Restructuring charges have been recorded in the Corporate segment.

The following table presents a summary of the restructuring charges included in Operating (loss) income from continuing operations for the three and nine months ended September 30, 2020:


(Thousands of dollars)	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Severance	$	2,635	22,502
Pension and termination benefit charges	—		10,913
Contract exit costs and other	2,347		12,964
Restructuring charges	$	4,982	46,379

The following table represents a reconciliation of the liability associated with the Company’s restructuring activities at September 30, 2020, which is reflected in Other accrued liabilities on the Consolidated Balance Sheet:


(Thousands of dollars)
Restructuring accruals	$	28,814
Utilizations	(19,635)
Liability at September 30, 2020	$	9,179