Restructuring and Reorganization Charges

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring and Reorganization Charges

8. 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 2019 we implemented the following restructuring activities:

• We reduced our workforce by approximately 70 employees, primarily in North America, as a result of organizational changes and efficiencies.  As a result, we incurred restructuring charges related to involuntary terminations of $2.5 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.

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

The activities discussed above resulted in total charges for 2019, 2018, and 2017 of $4.8 million, $8.7 million, and $8.8 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 2017, 2018, and 2019 is as follows (in thousands):  

							Disposition of
	Termination			Facilities			Business
	Benefits			Abandonment			Operations			Other			Total
January 1, 2017, 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
Charged to expense during period		2,499		—			—				2,335			4,834
Cash payments		(3,551	)	—			—				(1,987	)		(5,538	)
Adjustment for asset impairment	—			—			—				(438	)		(438	)
Adjustment for adoption of ASC 842 (1)	—				(2,934	)	—			—				(2,934	)
Other		472		—			—				90			562
December 31, 2019, balance	$	822		$	—		$	—		$	—		$	822

(1) With the adoption of ASC 842 on January 1, 2019, the facilities abandonment liabilities of $2.9 million were offset against our initial lease right-of-use assets on our Balance Sheet (see Notes 2 and 6 for further discussion of the adoption of ASC 842).    

As of December 31, 2019, $0.8 million of the business restructuring and reorganization reserves were included in current liabilities.