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Costs Associated with Exit and Restructuring Activities
3 Months Ended
Mar. 31, 2021
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 Condensed Consolidated Statement of Earnings.

Total restructuring charges are as follows:

 

 

 

Three Months Ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

Restructuring charges

 

$

81

 

 

$

240

 

 

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 (the "September 2020 Plan"). This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions. The restructuring cost of the September 2020 Plan is estimated to be in the range of $4,600 and $6,000, including workforce reduction charges, building and equipment relocation charges and 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 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 the September 2020 Plan were $(17) during the three months ended March 31, 2021, consisting of $36 of workforce reduction costs and $(53) of other contract termination and facility closure costs. The total restructuring liability related to the September 2020 Plan was $130 at March 31, 2021 and $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 (the "June 2016 Plan"). Additional organizational changes were also implemented in various other locations. In 2017, we revised the June 2016 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. These restructuring actions were completed as of March 31, 2021. Restructuring charges under the June 2016 Plan were $(3) and $(32) during the three months ended March 31, 2021 and March 31, 2020, respectively. The total restructuring liability related to the June 2016 Plan was $0 at March 31, 2021 and $3 at December 31, 2020.

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 (the “April 2014 Plan”). These restructuring actions were substantially completed during 2015. There were no restructuring charges incurred under the April 2014 Plan during the three months ended March 31, 2021 and March 31, 2020, respectively. The total restructuring liability related to the April 2014 Plan was $847 at March 31, 2021 and $839 at December 31, 2020. The remaining liability is expected to be settled in the second quarter of 2021.

Other Restructuring Activities

From time to time we undertake other restructuring activities that are not part of a formal plan. During the three months ended March 31, 2021 and March 31, 2020, we incurred restructuring charges of $101 and $272, respectively, primarily related to workforce reduction costs. The total restructuring liability associated with these actions was $83 at March 31, 2021 and $9 at December 31, 2020.

The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the three months ended March 31, 2021:

 

Restructuring liability at January 1, 2021

 

$

1,363

 

Restructuring charges

 

 

81

 

Cost paid

 

 

(232

)

Other activity(1)

 

 

(152

)

Restructuring liability at March 31, 2021

 

$

1,060

 

 

(1)

Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense.