XML 12 R20.htm IDEA: XBRL DOCUMENT v3.20.1
Restructuring
 3 Months Ended
Mar. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In the first quarter of 2020, we recorded a net restructuring gain of $1.2 million, primarily related to the 2017 repositioning actions described below.
2019 Repositioning
In the fourth quarter of 2019, we initiated actions to consolidate two manufacturing operations within our Fluid Handling segment. These actions include workforce reductions of approximately 180 employees, or less than 1% of our global workforce. Restructuring charges included $9.9 million of severance costs related to such actions, all of which are cash costs. During the three months ended March 31, 2020, there were no additional expenses recorded or payments made. We expect to incur additional restructuring and related charges of $4.8 million in 2020 and $4.2 million in 2021 to complete these actions.
Acquisition-Related Restructuring
In 2018, we initiated actions within our Payment & Merchandising Technologies segment related to the closure of Crane Currency’s printing operations in Sweden, which have been transitioned to a new print facility in Malta. These actions include workforce reductions of approximately 170 employees, or less than 2% of our global workforce.
Restructuring charges included severance and other costs related to such actions, all of which are cash costs. Cumulatively, through December 31, 2019, we incurred $6.9 million related to this program, of which $3.3 million were severance costs and $3.6 million were other costs. In 2019, we also recorded $0.6 million of additional costs associated with facility move costs. There is no remaining liability associated with these actions as of December 31, 2019, and we do not expect to incur additional restructuring charges related to these actions.
2017 Repositioning
During the fourth quarter of 2017, we initiated broad-based repositioning actions designed to improve profitability. These actions include headcount reductions of approximately 300 employees, or about 3% of our global workforce, and select facility consolidations in North America and Europe.
Restructuring charges included severance and other costs related to the consolidation of certain manufacturing operations, all of which are cash costs. The following table summarizes the restructuring charges by business segment in 2020 and cumulatively through March 31, 2020:
 
Severance
 
Other
 
Total
(in millions)
2020
 
Cumulative
 
2020
 
Cumulative
 
2020
 
Cumulative
Fluid Handling
$
—

 
$
17.3

 
$
—

 
$
—

 
$
—

 
$
17.3

Payment & Merchandising Technologies
—

 
12.6

 
(1.5
)
 
0.7

 
(1.5
)
 
13.3

Aerospace & Electronics
—

 
1.3

 
—

 
(1.4
)
 
—

 
(0.1
)
 
$
—

 
$
31.2

 
$
(1.5
)
 
$
(0.7
)
 
$
(1.5
)
 
$
30.5

Related to the repositioning actions, we recorded a pre-tax gain in the first quarter of 2020 of $1.5 million related to the sale of a facility in the Payment & Merchandising Technologies segment. We also recorded $1.3 million and $2.1 million of additional costs associated with facility consolidations in the three months ended March 31, 2020 and 2019, respectively, related to the 2017 repositioning actions. To complete these actions, we expect to incur an additional $0.9 million of facility consolidation related charges in 2020 in our Fluid Handling segment.
The following table summarizes the accrual balances related to these restructuring charges:
(in millions)
 
Balance at
December 31, 2019
 
Expense
(Gain) *
 
Utilization
 
Balance at
March 31, 2020
Fluid Handling
 
 
 
 
 
 
 
 
Severance
 
$
10.3

 
$
—

 
$
(1.1
)
 
$
9.2

Other
 
—

 
—

 
—

 
—

Total Fluid Handling
 
$
10.3

 
$
—

 
$
(1.1
)
 
$
9.2

 
 
 
 
 
 
 
 
 
Payment & Merchandising Technologies
 
 
 
 
 
 
 
 
Severance
 
$
1.6

 
$
—

 
$
—

 
$
1.6

Other
 
—

 
(1.5
)
 
1.5

 
—

Total Payment & Merchandising Technologies
 
$
1.6

 
$
(1.5
)
 
$
1.5

 
$
1.6

 
 
 
 
 
 
 
 
 
Aerospace & Electronics
 
 
 
 
 
 
 
 
Severance
 
$
0.6

 
$
—

 
$
(0.1
)
 
$
0.5

Other
 
0.2

 
—

 
(0.2
)
 
—

Total Aerospace & Electronics
 
$
0.8

 
$
—

 
$
(0.3
)
 
$
0.5

Total Restructuring
 
$
12.7

 
$
(1.5
)
 
$
0.1

 
$
11.3

* Reflected in the Consolidated Statements of Operations as “Restructuring (gain) charges, net”