RESTRUCTURING AND ASSET IMPAIRMENTS

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

DynaEnergetics

During the first quarter of 2020, DynaEnergetics reduced its workforce to address a sharp decline in well completions in the Company’s core oil and gas end market principally due to the COVID-19 pandemic. The workforce reduction impacted full-time, part-time and temporary direct-labor roles in manufacturing and assembly as well as general and administrative positions. We recorded total restructuring charges of $938 during the first quarter of 2020.

During the second quarter of 2020, the COVID-19 pandemic-related collapse in oil and gas demand led to a downturn in well completions and the corresponding demand for DynaEnergetics’ products. As a result, DynaEnergetics recorded asset impairment charges of $1,181 on certain manufacturing assets that will no longer be utilized in production at its Blum, Texas and Troisdorf, Germany facilities. Additionally, DynaEnergetics further reduced its workforce during the quarter and recorded severance expenses of $121.

During the third quarter of 2020, DynaEnergetics sold the land and buildings in Tyumen, Siberia to a third-party for $448, which was equal to the carrying value of the assets held for sale.

During the third quarter of 2019, DynaEnergetics completed a series of capacity expansion initiatives at its manufacturing facilities in North America and Germany. The new capacity improved DynaEnergetics’ operating efficiencies and enabled the business to more effectively serve its global customer base. Capitalizing on its more efficient manufacturing footprint, DynaEnergetics ceased its operations in Tyumen, Siberia in September 2019. During the third and fourth quarters of 2019, the Company released substantially all of its employees inside Russia, sold inventories and certain fixed assets, and proceeded to wind-down the operation.

During the third and fourth quarters of 2019, DynaEnergetics recorded non-cash asset impairment charges of $6,231, which was calculated by comparing the estimated fair value less costs to sell to the carrying value of the assets, severance charges of $1,261, and other exit costs of $268 within “Restructuring expenses, net and asset impairments.” Additionally,

DynaEnergetics recorded a non-cash inventory write down of $630 within “Cost of products sold” and an accounts receivable write down of $131 within "Selling and distribution expenses" associated with the decision to cease operations in Siberia.

During the fourth quarter of 2019, regional shifts in North American drilling and completion activity led DynaEnergetics to close distribution facilities in Canada and Oklahoma and to accelerate a planned consolidation of its perforating system assembly operations in Mt. Braddock, Pennsylvania into its flagship North American facility in Blum, Texas. Additionally, the Company substantially liquidated the assets and liabilities of DynaEnergetics' Siberian operations, as defined under U.S. GAAP. As a result, the related cumulative foreign currency translation loss of $10,420 was reclassified from the Consolidated Balance Sheets into the Consolidated Statement of Operations and was included within “Restructuring expenses, net and asset impairments.”

NobelClad

During the first and second quarters of 2020, NobelClad reduced its workforce as part of cost reduction efforts undertaken in response to the COVID-19 pandemic. The workforce reduction impacted direct-labor roles in manufacturing as well as general and administrative positions. During the fourth quarter of 2020, NobelClad identified certain assets that would no longer be used on a prospective basis and recorded asset impairment charges of $181 to write-off the remaining net book value of the assets upon disposal. During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France. During the second quarter of 2019, NobelClad sold its production facility in France and related assets and recognized a gain of $519. During 2019, NobelClad also recorded an additional accrual of $1,166 for known and probable severance liabilities related to employees terminated as part of closing the manufacturing operations in France. The additional severance accrual was recorded based, in part, on a successful appeal of severance benefits by some terminated employees during the second quarter of 2019.

Corporate

During the first quarter of 2020 in conjunction with the cost reduction efforts undertaken by DynaEnergetics and NobelClad in response to the COVID-19 pandemic, we eliminated certain positions in our corporate offices.

Total restructuring charges incurred for these programs are as follows and are reported in the "Restructuring expenses, net and asset impairments" line item in our Consolidated Statements of Operations for the years ended December 31:


	2020
	Severance		Asset Impairment		Contract Termination Costs		Equipment Moving Costs		Other Exit Costs (1)		Total
DynaEnergetics	$	936	$	1,181	$	19	$	126	$	660	$	2,922
NobelClad	140		180		—		—		26		346
Corporate	119		—		—		—		—		119
Total	$	1,195	$	1,361	$	19	$	126	$	686	$	3,387


	2019
	Severance		Asset Impairment / (Gain on asset disposals)		Contract Termination Costs		Equipment Moving Costs		Other Exit Costs		Total
DynaEnergetics	$	1,671	$	6,277	$	—	$	—	$	10,683	$	18,631
NobelClad	1,166		(636)		39		233		70		872

Total	$	2,837	$	5,641	$	39	$	233	$	10,753	$	19,503

(1) Other exit costs include DynaEnergetics Siberia's cumulative translation losses reclassified into the Consolidated Statement of Operations upon substantial liquidation.


	2018
	Severance		Contract Termination Costs		Equipment Moving Costs		Other Exit Costs		Total

NobelClad	$	637	$	43	$	249	$	185	$	1,114

The changes to the restructuring liability within accrued expenses associated with these programs is summarized below:


	December 31, 2019		Expense (1)		Payments		Currency and Other Adjustments		December 31, 2020
Severance	$	2,404	$	1,195	$	(2,547)	$	(94)	$	958
Contract termination costs	—		19		(19)		—		—
Equipment moving costs	—		126		(126)		—		—
Other exit costs	271		686		(1,132)		175		—
Total	$	2,675	$	2,026	$	(3,824)	$	81	$	958

(1) Excludes asset impairment expenses