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Costs Associated with Exit and Restructuring Activities
12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Costs Associated with Exit and Restructuring Activities

NOTE 9 — Costs Associated with Exit and Restructuring Activities

Restructuring charges are reported as a separate line within operating earnings in the Consolidated Statements of Earnings. Total restructuring charges were:

 

 

 

Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Restructuring charges

 

$

1,830

 

 

$

7,448

 

 

$

5,062

 

 

September 2020 Plan

In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities. This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions ("September 2020 Plan"). The restructuring cost of the plan is estimated to be in the range of $4,600 and $6,000, including workforce reduction charges, building and equipment relocation charges, other contract and asset related costs. In addition to these charges, we expect an additional $4,000 to $5,100 of other costs to be incurred related to the initiatives that would not qualify as restructuring charges. These costs would include certain employee overlap and training costs as well as additional capital expenditures. Restructuring charges under this plan were $1,422 during the year ended December 31, 2020, consisting of $812 of workforce reduction costs, $300 of asset impairment charges (see Note 8) and $310 of other contract termination and facility closure costs. The total restructuring liability related to the September 2020 Plan was $512 at December 31, 2020.

June 2016 Plan

In June 2016, we announced plans to restructure operations by phasing out production at our Elkhart, IN facility and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes were also implemented in various other locations. In 2017, we revised this plan to include an additional $1,100 in planned costs related to the relocation of our corporate headquarters in Lisle, IL and our plant in Bolingbrook, IL, both of which have now been consolidated into a single facility. Restructuring charges under this plan, which is substantially complete, were $(32), $4,284, and $4,559 during the

years ended December 31, 2020, 2019, and 2018, respectively. The total restructuring liability related to the June 2016 Plan was $3 and $233 at December 31, 2020 and 2019, respectively. Any additional costs related to product line movements, equipment charges, and other costs will be expensed as incurred.

The following table displays the restructuring charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through December 31, 2020:

 

June 2016 Plan

 

Planned

Costs

 

 

Actual costs

incurred through

December 31,

2020

 

Workforce reduction

 

$

3,075

 

 

$

3,312

 

Building and equipment relocation

 

 

9,025

 

 

 

10,530

 

Asset impairment charge

 

 

 

 

 

1,168

 

Other charges(1)

 

 

1,300

 

 

 

988

 

Restructuring charges

 

$

13,400

 

 

$

15,998

 

 

(1)

Other charges include the effects of currency translation, travel, legal and other charges.

April 2014 Plan

In April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint ("April 2014 Plan"). These restructuring actions were substantially completed during 2015. Restructuring charges under this plan were $0, $(248), and $503 during the years ended December 31, 2020, 2019, and 2018, respectively. The total restructuring liability related to the April 2014 Plan was $839 and $703 at December 31, 2020 and 2019, respectively. The remaining liability is expected to be settled in the first half of 2021.

Other Restructuring Activities

From time to time we incur other restructuring activities that are not part of a formal plan. During the years ended December 31, 2020 and 2019, we incurred restructuring charges of $442 and $3,412, respectively, for exit and disposal activities at three sites and workforce reduction costs across the company. The remaining restructuring liability associated with these actions was $9 and $1,057 at December 31, 2020 and December 31, 2019, respectively.

The following table displays the restructuring liability activity for all plans the year ended December 31, 2020:

 

Restructuring liability at January 1, 2020

 

$

1,993

 

Restructuring charges

 

 

1,830

 

Cost paid

 

 

(1,823)

 

Other activities(1)

 

 

(637)

 

Restructuring liability at December 31, 2020

 

$

1,363

 

 

(1)

Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges.

The total liability of $1,363 is included in Accrued expenses and other liabilities at December 31, 2020.