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Restructuring Charges
3 Months Ended
Mar. 31, 2021
Restructuring Charges  
Restructuring Charges

14. Restructuring Charges

During the first quarter of 2020, we completed restructuring activities to further streamline our organization and more fully align our teams to improve our customer service and profitability. We incurred severance costs of $1.7 million related to these activities during the three months ended March 31, 2020. No additional costs will be incurred for this organizational restructuring.

In response to the decreased activity level of our customers that resulted from the COVID-19 pandemic beginning in the second quarter of 2020, we have incurred severance costs of $6.1 million to right-size our business. We are not currently able to estimate the total amount of restructuring costs to be incurred as a result of the COVID-19 pandemic, as the magnitude and duration of the pandemic and its impact on our operations remain difficult to predict.

During the third quarter of 2020, a plan to dispose of certain non-core properties was approved by management. We have incurred $1.5 million of restructuring costs as a result of our property disposals and do not expect to incur additional material property disposal costs under this restructuring plan.

The severance and property disposal costs incurred under the above restructuring plans were recorded to restructuring charges in our condensed consolidated statements of operations.

The following table presents restructuring charges incurred by segment:

    

Contract

Aftermarket

(in thousands)

Operations

Services

Other (1)

Total

Three months ended March 31, 2021

Pandemic restructuring

$

279

$

24

$

585

$

888

Property restructuring

9

9

Total restructuring charges

$

279

$

24

$

594

$

897

Three months ended March 31, 2020

Organizational restructuring

$

478

$

625

$

625

$

1,728

(1)Represents expense incurred within our corporate function and not directly attributable to our segments.

The following table presents restructuring charges incurred by cost type:

Three Months Ended

March 31,

(in thousands)

2021

2020

Severance costs

Organizational restructuring

 

$

 

$

1,728

Pandemic restructuring

 

888

 

Total severance costs

888

1,728

Impairment - property restructuring

 

9

 

Total restructuring charges

$

897

$

1,728