Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

During 2018, the Company committed to various restructuring activities (the “2018 Restructuring Program”) including the termination of a vineyard operating lease agreement in Oregon and certain departmental reorganizations. Restructuring charges of $0.1 million and $1.3 million were incurred in the years ended December 31, 2019 and 2018, respectively. The Company has incurred $1.4 million of restructuring charges since the inception of the restructuring plan consisting of $0.9 million employee related costs, $0.4 million of asset impairment charges associated with leasehold improvements under the terminated vineyard operating lease agreement, and $0.1 million of other restructuring costs associated with departmental reorganization activities. The fair value of impaired leasehold improvements was determined using the undiscounted cash flows expected to result from the use and eventual disposition of the assets. The Company’s restructuring activities under the 2018 Restructuring Program were substantially complete as of March 31, 2019.

During 2020, the Company committed to various restructuring activities (the “2020 Restructuring Program”) including the closure of the Double Canyon Vineyards tasting room, restructuring of management, changes in sales, marketing, and Direct to Consumer organizational structure, and transitioning of information technology services and export fulfillment to outsourced support models. For the year ended December 31, 2020, the Company incurred $1.4 million of restructuring charges, consisting of $1.1 million employee related costs, $0.2 million of asset impairment charges associated with the tasting room assets upon closure, and $0.1 of other restructuring costs associated with departmental reorganization activities. The Company’s restructuring activities under the 2020 Restructuring Program were substantially complete as of September 30, 2020.

The Company recorded costs of $1.2 million for employee related restructuring activities and paid $1.2 million during the year ended December 31, 2020. The liability related to restructuring activities was $0.3 million at December 31, 2020 and 2019.

A roll forward of the liability recognized for employee related restructuring activities as of December 31, 2020 is as follows (in thousands):


	Balance at December 31, 2019		Additions		Payments		Balance at December 31, 2020
Employee related restructuring activity	$	308	$	1,242	$	(1,241)	$	309