Restructuring and Impairment Charges

12 Months Ended

Dec. 31, 2014

Restructuring and Impairment Charges [Abstract]

Note 7 – Restructuring and Impairment Charges

During the fourth quarter of 2013, the Company recorded restructuring and impairment charges of $10,452 which are reported as a separate line item on the Company's consolidated statements of operations. These charges consisted of non-cash charges of $7,592 related to the Company's then idled Danville, Illinois manufacturing facility, $1,620 related to the Company's closed railcar maintenance and repair shop in Clinton, corporate severance charges of $1,119 and other charges of $121.

The Company tested the long-lived assets at its Danville manufacturing facility for impairment as of December 31, 2013 because the Company was unable to predict when the Danville facility would resume operations based on the Company's backlog for coal car orders and the soft industry outlook. The carrying values of property, plant and equipment at the Danville facility were reduced to their estimated fair market values, resulting in non-cash impairment charges of $7,024 for buildings and improvements and $568 for machinery and equipment for the year ended December 31, 2013.

As part of the Company's strategic initiative to improve the contribution of its Services business to the Company's results of operations, management evaluated the long-term profitability of each of its railcar maintenance and repair shops during the fourth quarter of 2013 and decided to close its underperforming maintenance and repair shop in Clinton. As a result of this decision, the Company evaluated the recoverability of its long-lived assets and reduced the carrying values of property, plant and equipment to their estimated fair market values, resulting in non-cash impairment charges of $1,113 for buildings and improvements, $270 for machinery and equipment and $131 for land for the year ended December 31, 2013. The Company also recorded a non-cash impairment charge of $106 related to customer intangibles and recorded other charges of $121 related to the Clinton closure during the fourth quarter of 2013. During the third quarter of 2014, these assets were sold to a third party resulting in a gain on sale of $1,078, which is included in gain on sale of assets held for sale in the consolidated statement of operations for the year ended December 31, 2014.

The Company revised its Corporate management reporting structure as part of the leadership transition following the retirement of the Company's previous President and Chief Executive Officer during the fourth quarter of 2013, resulting in severance charges of $1,119 being recorded during the fourth quarter of 2013. Substantially all of the severance payments were made during 2014.

The components of the restructuring and impairment charges for the year ended December 31, 2013, are as follows:

Impairment charge for Manufacturing segment land, building and equipment	$ 7,592
Impairment charge for Services segment land, building and equipment	1,514
Impairment charge for Services segment customer intangibles	106
Employee severance as a result of Corporate restructuring	1,119
Other charges related to Services segment impairment	121

Total restructuring and impairment charges	$ 10,452

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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