Note N - Restructuring Activities

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note N — Restructuring Activities

Our management team continuously reviews and adjusts 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 (PA) and Grand Prairie (TX) and exited our last direct mail facility in Jacksonville (FL).  We completed the migration of our fulfillment business from the Grand Prairie (TX) operations into a new 400,000 square foot facility in Kansas City (KS) in December 2020.  In the first quarter of 2021, we completed the migration of our Shawnee (KS) operations to Kansas City (KS).  The Shawnee (KS) facility lease expired on  April 30, 2021.  The new Kansas City location is now our primary facility in the Midwest. In 2020, we successfully reduced the footprint of our Customer Care business by reducing our Austin (TX) office location by approximately 50,000 square feet in addition to exiting one of our two Manila offices since the business is operating effectively in a work-from-home environment. 

In connection with our cost-saving and restructuring initiatives, we incurred total restructuring charges of $27.6 million through the end of 2021.  We completed our restructuring in 2021, and expect no further restructuring expenses in 2022 related to our restructuring plan.

In the three months ended June 30, 2021, we recorded restructuring charges of $1.7 million, which included $1.2 million of severance charges and $0.5 million of facility related and other expenses.  In the six months ended June 30, 2021, we recorded restructuring charges of $3.9 million, which included $1.4 million of severance charges ,$2.2 million of facility related and other expenses and $0.3 million in lease impairment expense.

The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statements of Comprehensive Income.

	Three Months Ended June 30,			Six Months Ended June 30,
In thousands	2021			2021
Severance		1,209			1,413
Facility, asset impairment and other expense
Lease impairment and termination expense		—			294
Fixed Asset disposal and impairment charges		(4	)		6
Facility and other expenses		539			2229
Total facility, asset impairment and other expense		535			2,529
Total	$	1,744		$	3,942

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

In thousands	Three Months Ended June 30, 2022
	Contract Termination Fee		Severance			Facility, asset impairment and other expense		Total
Beginning Balance:	$	—	$	405		$	—	$	405
Additions		—		—			—		—
Payments and adjustments		—		(320	)		—		(320	)
Ending Balance:	$	—	$	85		$	—	$	85

In thousands	Six Months Ended June 30, 2022
	Contract Termination Fee		Severance			Facility, asset impairment and other expense		Total
Beginning balance:	$	—	$	738		$	—	$	738
Additions		—		—			—		—
Payments and adjustments		—		(653	)		—		(653	)
Ending balance:	$	—	$	85		$	—	$	85

In thousands	Three Months Ended June 30, 2021
	Contract Termination Fee		Severance			Facility, asset impairment and other expense		Total
Beginning Balance:	$	—	$	350		$	8	$	358
Additions		—		1,209			13		1,222
Payments		—		(622	)		—		(622	)
Ending Balance:	$	—	$	937		$	21	$	958

	For the Six Months Ended June 30, 2021
	Contract Termination Fee		Severance			Facility, asset impairment and other expense		Total
Beginning Balance:	$	—	$	549		$	4	$	553
Additions		—		1,413			17		1,430
Payments		—		(1,025	)		—		(1,025	)
Ending Balance:	$	—	$	937		$	21	$	958