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Restructuring and Reorganization Charges
 12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
Restructuring and Reorganization Charges

7.

Restructuring and Reorganization Charges

 

Restructuring and reorganization charges are expenses that generally result from cost reduction initiatives and/or significant changes to our business, to include such things as involuntary employee terminations, changes in management structure, divestitures of businesses, facility consolidations and abandonments, impairment of acquired intangible assets, and fundamental reorganizations impacting operational focus and direction.  The following are the key restructuring and reorganizational activities we incurred over the last three years that have impacted our results from operations:     

During 2016 we implemented the following restructuring activities:

 

•

We reduced our workforce by approximately 60 employees, primarily in North America, as a result of organizational changes and the realignment of our workforce.  As a result, we incurred restructuring charges of $7.2 million.

 

•

In 2016, the cyber-security business we sold in 2015 was acquired by a third-party.  Based on the terms of the Agreement, we received additional consideration contingent upon a liquidation event, as defined in the Agreement.  This resulted in an additional gain on the sale of $6.6 million in the first quarter of 2016, which reduced restructuring and reorganization charges.

During 2017 we implemented the following restructuring activities:

 

•

We reduced our workforce by approximately 60 employees, primarily in North America, as a result of organizational changes made to pursue global opportunities and efficiencies.  As a result, we incurred restructuring charges related to involuntary terminations of $3.7 million.

 

•

We impaired a long-term receivable related to the disposition of a business in 2013 resulting in additional restructuring charges of $2.9 million.

 

•

We have abandoned space at several locations to improve our space utilization, resulting in restructuring charges of $2.2 million.

During 2018 we implemented the following restructuring activities:

 

•

We reduced our workforce by approximately 170 employees as a result of organizational changes made to pursue global opportunities and efficiencies.  As a result, we incurred restructuring charges related to involuntary terminations of $6.2 million.

 

•

We closed one of our print facilities.  As a result, we incurred restructuring charges related to involuntary terminations and impairment of assets of $2.7 million.

 

•

We reversed a liability related to a previous disposition of a business resulting in a reduction in restructuring charges of $2.3 million.

The activities discussed above resulted in total charges for 2018, 2017, and 2016 of $8.7 million, $8.8 million, and $0.4 million, respectively, which have been reflected as a separate line item in our Income Statements.

The activity in the business restructuring and reorganization reserves during 2018, 2017, and 2016 is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Disposition of

 

 

 

 

 

 

 

 

 

 

 

Termination

 

 

Facilities

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

Benefits

 

 

Abandonment

 

 

Operations

 

 

Other

 

 

Total

 

January 1, 2016, balance

 

$

1,637

 

 

$

1,357

 

 

$

—

 

 

$

—

 

 

$

2,994

 

Charged to expense during period

 

 

7,201

 

 

 

556

 

 

 

(6,611

)

 

 

(730

)

 

 

416

 

Cash payments

 

 

(6,781

)

 

 

(473

)

 

—

 

 

—

 

 

 

(7,254

)

Adjustment for the gain on the disposition of business operations

 

—

 

 

—

 

 

 

6,611

 

 

—

 

 

 

6,611

 

Other

 

357

 

 

 

(108

)

 

—

 

 

 

730

 

 

 

979

 

December 31, 2016, balance

 

 

2,414

 

 

 

1,332

 

 

 

—

 

 

 

—

 

 

 

3,746

 

Charged to expense during period

 

 

3,693

 

 

 

2,236

 

 

 

2,904

 

 

 

(37

)

 

 

8,796

 

Cash payments

 

 

(4,345

)

 

 

(1,329

)

 

—

 

 

—

 

 

 

(5,674

)

Adjustment for asset impairment

 

—

 

 

 

(231

)

 

 

(2,904

)

 

—

 

 

 

(3,135

)

Other

 

 

(646

)

 

 

1,024

 

 

—

 

 

 

37

 

 

 

415

 

December 31, 2017, balance

 

 

1,116

 

 

 

3,032

 

 

 

—

 

 

 

—

 

 

 

4,148

 

Charged to expense during period

 

 

6,555

 

 

 

1,981

 

 

 

(2,330

)

 

 

2,455

 

 

 

8,661

 

Cash payments

 

 

(6,744

)

 

 

(2,625

)

 

—

 

 

—

 

 

 

(9,369

)

Adjustment for asset impairment

 

—

 

 

—

 

 

—

 

 

 

(1,851

)

 

 

(1,851

)

Other

 

 

475

 

 

 

546

 

 

 

2,330

 

 

 

(604

)

 

 

2,747

 

December 31, 2018, balance

 

$

1,402

 

 

$

2,934

 

 

$

—

 

 

$

—

 

 

$

4,336

 

As of December 31, 2018, $2.3 million of the business restructuring and reorganization reserves were included in current liabilities.