Note O - Restructuring Activities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note O — Restructuring Activities

In

2019,

our management team, along with members of the Board, formed a project committee focused on cost-saving initiatives and other restructuring efforts. This committee reviewed each of our business segments and other operational areas to identify both

one

-time and recurring cost-saving opportunities. In

2020,

our management team continues to review and adjust our cost structure and operating footprint, optimize our operations, and invest in improved technology.

During

2020,

in an effort to right-size our operating footprint, we terminated leases in Wilkes Barre and Grand Prairie and exited our last direct mail facility in Jacksonville.  We migrated our fulfillment business from the Grand Prairie operations into a new

300,000

square foot facility in Kansas City in

December 

of

2020.

  The new Kansas City location will be our primary facility in the Midwest. We have successfully reduced the footprint of our Customer Care business by reducing our Austin office location by approximately

50,000

square feet in addition to exiting and subleasing 

one

of our Manila offices since the business is operating effectively in a work-from-home environment. 

In the years ended 

December 31, 2020

and

2019

, we recorded restructuring charges of

$9.4

 million and

$11.8

million, respectively. The

2020

restructuring charges included

$3.0

million of lease impairment charges related to the exit from our direct mail facilities,

$2.5

 million of severance charges,

$1.3

million in capital losses from the asset disposal associated with the Summit deal and 

$2.9

million of facility related and other expenses as well as

$0.3

million credit to previously accrued contract termination fees. 

2019

restructuring expenses were primarily related to the

$4.0

million write off of our customer databases and

$3.1

million contract termination fee,

$2.1

million severance agreements,

$1.0

million lease impairment charge, and

$0.4

million asset impairment charge as well as

$1.2

million of facility and other expenses. 

The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Consolidated Statement of Comprehensive Loss.

In thousands	Year Ended December 31, 2020			Year Ended December 31, 2019
Customer database build write off	$	—		$	4,036
Contract termination fee		—			3,101
Adjustment to Contract termination fee		(306	)		—
Severance		2,495			2,098
Facility, asset impairment and other expense
Lease impairment and termination expense		2,974			956
Fixed Asset disposal and impairment charges		1,327			350
Facility and other expenses		2,884			1,258
Total facility, asset impairment and other expense		7,185			2,564
Total	$	9,374		$	11,799

The following table summarizes the changes in liabilities related to restructuring activities:

In thousands	Year Ended December 31, 2020
	Contract Termination						Facility, asset impairment and other
	Fee			Severance			expense			Total
Beginning balance:	$	1,491		$	360		$	70		$	1,921
Additions:		—			2,471			3,144			5,615
Payments		(1,491	)		(2,282	)		(3,210	)		(6,983	)
Ending balance:	$	—		$	549		$	4		$	553

We expect that in connection with our cost-saving and restructuring initiatives, we will incur total restructuring charges of approximately

$24.8

 million through the end of

2021.

  In the years ended 

December 31, 2020

and

2019

, we recognized

$9.4

million  and

$11.8

million of restructuring expense, respectively.  We expect to incur

$3.6

 million of restructuring charges through the end of

2021.