Restructuring

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

2020 Activity

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 year ended December 31, 2020.

Corporacion de Occidente SA de CV

On January 24, 2020, the Company acquired the remaining 41.57 percent noncontrolling ownership interest in 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 related to the COOCSA acquisition for the year ended December 31, 2020.

The full year period costs related to the reduction in force and COOCSA acquisition are comprised of:


	Twelve Months Ended December 31, 2020
Reduction in force - severance	$	1,250
Reduction in force - other	224
COOCSA workforce services rendered	8,218
COOCSA professional and other costs	2,712
Total restructuring expense	$	12,404

At December 31, 2020, the Company did not have an accrued restructuring balance related to these actions.

2019 Activity

Cooper Tire Europe

On January 17, 2019, Cooper Tire Europe, a wholly-owned subsidiary of the Company, committed to a plan to cease substantially all 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 $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.

Cooper Tire Asia

In the fourth quarter of 2019, the Company's Asian operations, included in the International Segment, completed a headcount optimization review. As a result of this optimization, the Company incurred $1,262 of restructuring expense during 2019.

For the year ended December 31, 2019, the Company recorded restructuring expense of $8,818, made up of employee severance, asset write-downs and other costs. At December 31, 2019, the Company's accrued restructuring balance was $1,398, composed primarily of severance costs related to the Asian operations.


	Twelve Months Ended December 31, 2019
Cooper Tire Europe employee severance costs	$	5,308
Cooper Tire Europe asset write-downs & other costs	2,248
Cooper Tire Asia employee severance costs	1,262
Total restructuring expense	$	8,818

Beginning balance of accrued restructuring	$	—
Accrued severance costs	6,630
Payment of severance costs	(5,368)
Accrued professional fees	819
Payment of professional fees	(683)
Balance of accrued restructuring at December 31, 2019	$	1,398
Payment of severance costs	(1,262)
Payment of professional fees	(136)
Balance of accrued restructuring at December 31, 2020	$	—

In addition to the costs classified as restructuring expense on the Consolidated Statement of Income, the Company incurred additional costs of $759 in 2019 as a result of Cooper Tire Europe's decision to cease light vehicle production at its Melksham facility. These additional costs relate to professional fees associated with the Company's evaluation of its legal entity structure moving forward, as well as other matters, and are included within Selling, general and administrative expense on the Consolidated Statement of Income.