Restructuring

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Restructuring

Restructuring

On January 17, 2019, Cooper Tire Europe, a wholly owned subsidiary of the Company, committed to the planned cessation of passenger car and light truck tire production ("light vehicle tire production") at its Melksham, U.K. facility, which is included in the International Segment. This initiative is expected to result in charges to 2019 pre-tax earnings of approximately $8 to $11 million, of which 5 to 10 percent are expected to be non-cash charges. An estimated 300 roles will be eliminated at the site. Cooper Tire Europe will obtain light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles will remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, the materials business, Cooper Tire Europe headquarters, sales and marketing, and the Europe Technical Center. Phasing out of light vehicle tire production is expected to be completed in the third quarter of 2019.

For the three and six months periods ended June 30, 2019, the Company recorded restructuring expense of $1,659 and $6,632, made up of employee severance, asset write-downs and other costs. At June 30, 2019, the Company's accrued restructuring balance is $4,609, related largely to employee severance costs.

	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Employee severance costs	$	1,556		$	5,719
Asset write-downs & other costs	103			913
Total restructuring expense	$	1,659		$	6,632
Beginning balance of accrued restructuring - severance	$	4,163		$	—
Additional severance accrual	1,556			5,719
Payment of severance costs	(1,235		)	(1,235		)
Beginning balance of accrued restructuring - other	125			—
Additional other accrual	103			303
Payment of other costs	(103		)	(178		)
Ending balance of total accrued restructuring	$	4,609		$	4,609

In addition to the costs classified as restructuring expense, the Company incurred additional costs of $314 in the second quarter of 2019 as a result of Cooper Tire Europe's decision to cease light vehicle tire production at the Melksham facility. These additional costs relate to professional fees associated with the Company's evaluation of its legal entity structure moving forward and are included within selling, general and administrative expense for the three and six months periods ended June 30, 2019. These costs, as well as estimates for similar types of costs in future periods, are included in the $8 to $11 million overall estimate of costs related to the Melksham decision.