Restructuring Costs (Notes)

12 Months Ended

Dec. 31, 2019

RESTRUCTURING COSTS

During the third quarter of 2017, the Company initiated restructuring activities at certain businesses to support the ongoing effort of improving capacity utilization and operating efficiency to better position the Company for increased profitability and growth. Such actions include workforce reductions and the consolidation of operations, beginning in the third quarter of 2017 through the planned completion of restructuring activities in 2019. The Company currently expects these actions to result in approximately $9.5 million in pre-tax restructuring and transition charges. The Company has begun realizing total cost savings in excess of $8.0 million annually as a result of these restructuring activities.

The following table summarizes the accrual balances by cost type for the restructuring actions:



	Severance			Other ⁽¹⁾			Total
In thousands
Restructuring accrual balance at December 31, 2018	$	1,022		$	558		$	1,580
Provision	(15		)	198			183
Cash payments	(999		)	(380		)	(1,379		)
Changes in foreign currency exchange rates	(8		)	1			(7		)
Restructuring accrual balance at December 31, 2019	$	—		$	377		$	377

⁽¹⁾ Includes costs associated with consolidation of facilities.

5. RESTRUCTURING COSTS (CONTINUED)

The above accrual balance was included in other current liabilities on the Company's Consolidated Balance Sheets. Since the announcement of these restructuring activities, restructuring expense related to these activities as of December 31, 2019 was $9.3 million. For the year ended December 31, 2019, restructuring expense, totaling $0.6 million, was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $0.3 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations and $0.1 million in depreciation expense associated with an enterprise resource planning ("ERP") system that will no longer be utilized as a result of the restructuring activities.

For the year ended December 31, 2018, restructuring expense, totaling $6.0 million, was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $0.8 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations and $0.4 million associated with the acceleration of stock compensation for management impacted by the restructuring activities.

For the year ended December 31, 2017, restructuring expense, totaling $2.7 million, was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $1.0 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations.

As part of the restructuring activities discussed above, the Company sold its U.K. Tooling business and substantially all of the assets and liabilities of its Engineering Services business in the fourth quarter of 2018. These divestitures did not qualify for the reporting of discontinued operations within the consolidated financial statements. In the year ended December 31, 2018, the Company incurred a loss of $5.7 million associated with the sale of the U.K. Tooling business, which was included in loss on the sale of business on the Company's Consolidated Statements of Operations. Of the $5.7 million loss on the sale of the U.K. Tooling business, $1.7 million related to the foreign currency translation reclassified from accumulated other comprehensive income (loss) to net income. In the year ended December 31, 2019, the Company incurred an additional loss of $3.7 million associated with the write-off of note receivables recorded in 2018 for the remaining amounts to be collected on the sale of the U.K. Tooling business as this balance was deemed not likely to be collected. This charge was included in loss on the sale of business on the Company's Consolidated Statements of Operations. At December 31, 2018, the present value of these note receivables of $0.2 million and $2.3 million were included in other current assets and other assets, respectively, on the Company's Consolidated Balance Sheets. In the year ended December 31, 2018, the Company incurred a loss of $0.7 million associated with the sale of substantially all of the assets and liabilities of its Engineering Services business, which was included in net loss (gain) on the sale of assets on the Company's Consolidated Statements of Operations.

Other Matters

In addition to the restructuring activities above, for the year ended December 31, 2019, the Company's corporate office incurred $0.9 million in severance expense. Of this amount, $0.5 million was recorded in accrued salaries and wages on the Company's Consolidated Balance Sheets as of December 31, 2019. These amounts are not included in the table above.

For the year ended December 31, 2018, the Company incurred $1.4 million in costs associated with the termination of certain distributor agreements and separation costs for certain employees not covered by restructuring activities noted above.

In 2017, the Company incurred $0.4 million of other severance expense. There was also $1.6 million in separation costs associated with a senior executive recorded in accrued salaries and wages on the Company's Consolidated Balance Sheets as of December 31, 2017. These amounts are not included in the table above.