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Restructuring, Impairment and Other Charges
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring, Impairment and Other Charges

Note 8. Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges recognized in Results of Operations

For the three months ended June 30, 2019 and 2018, the Company recorded the following net restructuring charges:

 

Three Months Ended

 

Employee

 

 

Total

Restructuring

 

 

 

 

 

June 30, 2019

 

Terminations

 

 

Charges

 

 

Total

 

U.S.

 

$

2.7

 

 

$

2.7

 

 

$

2.7

 

International

 

 

0.4

 

 

 

0.4

 

 

 

0.4

 

Corporate

 

 

0.7

 

 

 

0.7

 

 

 

0.7

 

Total

 

$

3.8

 

 

$

3.8

 

 

$

3.8

 

 

Three Months Ended

 

Employee

 

 

Other

Restructuring

 

 

Total

Restructuring

 

 

 

 

 

June 30, 2018

 

Terminations

 

 

Charges

 

 

Charges

 

 

Total

 

U.S.

 

$

0.4

 

 

$

0.2

 

 

$

0.6

 

 

$

0.6

 

International

 

 

1.9

 

 

 

 

 

 

1.9

 

 

 

1.9

 

Corporate

 

 

0.1

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Total

 

$

2.4

 

 

$

0.2

 

 

$

2.6

 

 

$

2.6

 

 

For the six months ended June 30, 2019 and 2018, the Company recorded the following net restructuring and other charges:

 

Six Months Ended

 

Employee

 

 

Total

Restructuring

 

 

Other

 

 

 

 

 

June 30, 2019

 

Terminations

 

 

Charges

 

 

Charges

 

 

Total

 

U.S.

 

$

3.2

 

 

$

3.2

 

 

$

0.1

 

 

$

3.3

 

International

 

 

1.0

 

 

 

1.0

 

 

 

 

 

 

1.0

 

Corporate

 

 

1.6

 

 

 

1.6

 

 

 

 

 

 

1.6

 

Total

 

$

5.8

 

 

$

5.8

 

 

$

0.1

 

 

$

5.9

 

 

Six Months Ended

 

Employee

 

 

Other

Restructuring

 

 

Total

Restructuring

 

 

Other

 

 

 

 

 

June 30, 2018

 

Terminations

 

 

Charges

 

 

Charges

 

 

Charges

 

 

Total

 

U.S.

 

$

0.5

 

 

$

0.7

 

 

$

1.2

 

 

$

0.1

 

 

$

1.3

 

International

 

 

1.8

 

 

 

 

 

 

1.8

 

 

 

 

 

 

1.8

 

Corporate

 

 

0.2

 

 

 

 

 

 

0.2

 

 

 

 

 

 

0.2

 

Total

 

$

2.5

 

 

$

0.7

 

 

$

3.2

 

 

$

0.1

 

 

$

3.3

 

 

For the three and six months ended June 30, 2019, the Company recorded net restructuring charges of $3.8 million and $5.8 million, respectively, for employee termination costs for 164 employees, substantially all of whom were terminated as of June 30, 2019. These charges primarily related to the reorganization of certain operations. For the six months ended June 30, 2019, the Company also incurred $0.1 million for other charges associated with Company’s decision to withdraw in 2013 from certain multi-employer pension plans serving facilities that continued to operate.

For the three and six months ended June 30, 2018, the Company recorded net restructuring charges of $2.4 million and $2.5 million, respectively, for employee termination costs for 47 employees, all of whom were terminated as of June 30, 2019. These charges primarily related to the reorganization of certain operations. Additionally, the Company incurred net lease termination and other restructuring cost of $0.2 million and $0.7 million, respectively, for the three and six months ended June 30, 2018.

Restructuring Reserve

The restructuring reserve as of December 31, 2018 and June 30, 2019, and changes during the six months ended June 30, 2019, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Restructuring

 

 

 

 

 

 

Adoption of

 

 

Cash

 

 

June 30,

 

 

2018

 

 

Charges

 

 

Reversals

 

 

ASU 2016-02

 

 

Paid

 

 

2019

 

Employee terminations

$

0.4

 

 

$

5.9

 

 

$

(0.1

)

 

$

 

 

$

(3.3

)

 

$

2.9

 

Lease terminations

 

1.1

 

 

 

 

 

 

 

 

 

(1.1

)

 

 

 

 

 

 

Other

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Total

$

1.7

 

 

$

5.9

 

 

$

(0.1

)

 

$

(1.1

)

 

$

(3.3

)

 

$

3.1

 

 

The current portion of restructuring reserves of $3.0 million at June 30, 2019 was included in accrued liabilities, while the long-term portion of $0.1 million was included in other noncurrent liabilities at June 30, 2019.

The Company anticipates that payments associated with the employee terminations reflected in the table above will be substantially completed by December 31, 2019.

The restructuring liabilities classified as “lease terminations” consisted of lease terminations, other facility closing costs and contract termination costs. Upon adoption of ASU 2016-02, the restructuring liabilities as of January 1, 2019 were recorded as a reduction to the related ROU assets recorded on January 1, 2019. Refer to Note 7, Leases, for further information.