Restructuring and Related Activities

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Note 4 – Restructuring and Related Activities

The Company places a strong emphasis on controlling its costs and combats general price inflation by continuously improving its efficiency and operating performance. When the ongoing cost containment activities are not adequate, the Company takes actions to maintain its cost competitiveness.

The Company incurred significant restructuring costs in its past to reduce its cost structure. Historically, the Company's primary cost reduction technique was through the transfer of production from high-labor-cost countries to lower-labor-cost countries. Since 2013, the Company's cost reduction programs have primarily focused on reducing fixed costs, including selling, general, and administrative expenses.

In the third fiscal quarter of 2019, the Company announced global cost reduction and management rejuvenation programs as part of its continuous efforts to improve efficiency and operating performance.

The Company also implemented restructuring programs during 2013 - 2017 ("Prior Year Programs"). These programs were substantially completed as of December 31, 2017, though certain amounts were settled in cash during 2018 and 2019.

The following table summarizes restructuring and related expenses which were recognized and reported on a separate line in the accompanying consolidated statements of operations:

	Years ended December 31,
	2019			2017
2019 Global Cost Reduction & Management Rejuvenation Program		$	24,139	$	-
Prior Year Programs			-		11,273
Total		$	24,139	$	11,273

2019 Global Cost Reduction and Management Rejuvenation Programs

The 2019 Global Cost Reduction and Management Rejuvenation Programs are primarily designed to reduce manufacturing fixed costs and selling, general, and administrative costs company-wide, and provide management rejuvenation. The Company expects to incur charges of approximately $25,000, primarily related to cash severance costs, to implement these programs. The Company expects these cost reductions to be fully achieved by December 2020.

The Company incurred $24,139 of restructuring expenses, primarily severance costs, during the year ended December 31, 2019. Cash paid for these programs was $1,330 during the year ended December 31, 2019. Severance benefits are generally paid in a lump sum at cessation of employment. The current portion of the liability is $18,841 and is included in other accrued expenses in the accompanying consolidated balance sheet. The non-current portion of the liability is $4,003 and is included in other liabilities in the accompanying consolidated balance sheet.

Prior Year Programs

The Company incurred $73,398 of restructuring expense, primarily severance, associated with the Prior Year Programs during the period 2013 - 2017, of which $11,273 was incurred in 2017. amounts were incurred during the years ended December 31, 2018 or 2019. These programs were substantially implemented as of December 31, 2017. As of December 31, 2019, the remaining amounts to be paid for the Prior Year Programs is immaterial.