Restructuring

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Reduction in Force

In the second quarter of 2020, the Company announced a reduction in its workforce as a result of the Company's continuing evaluation of the skills and roles required for the Company to succeed and grow into the future. As a result of this action, the Company incurred severance and other related costs of $1,474 for the three month period ended June 30, 2020. No further expenses were incurred for the nine month period ended September 30, 2020.

Corporacion de Occidente SA de CV

On January 24, 2020, the Company acquired the remaining 41.57 percent noncontrolling ownership interest in Corporacion de Occidente SA de CV ("COOCSA"), making COOCSA a wholly-owned subsidiary in the Americas Segment. In this transaction, the Company acquired the remaining outstanding voting common stock of COOCSA for a total cash price of $54,500. In addition, subsequent to the acquisition, payments of $15,984 were made to members of the prior joint venture workforce in connection with services rendered.

In accordance with ASC 810, "Consolidation", the excess of the purchase price over the noncontrolling shareholder interest was recorded as a decrease to Capital in excess of par value to reflect the additional ownership. Payments to members of the joint venture workforce in connection with services rendered included $7,772 paid to members that were also shareholders of the non-controlling interest. This amount was also treated as part of the overall purchase price under ASC 810.

In addition to the payments made to the joint venture workforce for services rendered, the Company also incurred $2,712 of other costs associated with the transaction. For the three month period ended March 31, 2020, the Company incurred restructuring expense of $10,930 related to the COOCSA acquisition. There were no further restructuring expenses for the nine month period ended September 30, 2020.

The three and nine month period costs related to the reduction in force and COOCSA acquisition are comprised of:



	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Reduction in force - severance	$	—	$	1,250
Reduction in force - other	—		224
Joint venture workforce services rendered	—		8,218
Professional and other costs	—		2,712
Total restructuring expense	$	—	$	12,404

At September 30, 2020, the Company's accrued restructuring balance is $461, composed of accrued severance and other costs. The Company does not anticipate material further restructuring costs related to these events in 2020.

Cooper Tire Europe

On January 17, 2019, Cooper Tire Europe, a wholly-owned subsidiary of the Company, committed to a plan to cease light vehicle tire production at its Melksham, U.K. facility, which is included in the International Segment. The phasing out of light vehicle tire production was substantially completed in the third quarter of 2019. Approximately 300 roles were eliminated at the site. Cooper Tire Europe now obtains light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, a materials business, Cooper Tire Europe headquarters, sales and marketing, and the Europe Technical Center. Costs related to the decision to cease light vehicle tire production at the Melksham, U.K. facility were $811 for the quarter ended September 30, 2019, $7,442 for the nine months ended September 30, 2019 and $8,315 for the full year ended December 31, 2019. In connection with this business realignment, a one-time payment from the U.S. to Serbia was made during the fourth quarter of 2019 in order to allow the Serbian operations to improve their

financial standing and serve as a reliable and fully operational contract manufacturer for the U.S.



	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Melksham employee severance costs	$	(411	)	$	5,308
Asset write-downs & other costs	1,222			2,134
Total restructuring expense	$	811		$	7,442

In addition to the items classified as restructuring expense, the Company incurred costs of $363 and $677 for the three and nine months ended September 30, 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 were included within selling, general and administrative expense. For the year ended December 31, 2019, the Company incurred $759 of additional costs within selling, general and administrative costs.