Restructuring Costs (Notes)

12 Months Ended

Dec. 31, 2022

RESTRUCTURING AND SEVERANCE COSTS

Restructuring and severance costs are included in restructuring and severance costs on the Company's Consolidated Statements of Operations and other unallocated expenses, net within in Note 4, Segment and Geographic Information.

Transformation Restructuring

In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result of this review, the Company identified areas to reduce annualized costs in the Precision Products segment and at Corporate through streamlining processes, consolidating the production of fuzes for the JPF program at its Middletown facility, discontinuing K-MAX® helicopter production and right-sizing the Company's total cost structure. In the year ended December 31, 2022, the Company incurred $6.6 million in severance costs associated with these actions.

Refer to Note 12, Goodwill and Other Intangible Assets, Net, for further information on the consolidation of JPF production and refer to Note 10, Inventories, and Note 7, Contract Assets, Contract Costs and Contract Liabilities, for further information regarding the K-MAX® program impairments.

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


	Severance		Other		Total
In thousands
Restructuring accrual balance at December 31, 2021	$	—	$	—	$	—
Provision	6,629		—		6,629
Cash payments	—		—		—
Restructuring accrual balance at December 31, 2022(1)	$	6,629	$	—	$	6,629

(1) Of the above accrual balance, $1.0 million was included in other long-term liabilities on the Company's Consolidated Balance Sheets. The remainder is included in other current liabilities.

Cost Reduction Initiative

The Company continues to evaluate its cost structure with the objective of a lean organizational structure that improves operational efficiency and provides a scalable infrastructure which facilitates future growth opportunities. The Company has identified workforce reductions and other reductions in certain general and administrative expenses to support the cost savings initiative. In the years ended December 31, 2022, 2021, and 2020, the Company incurred $3.2 million, $6.2 million, and $4.0 million, respectively, related to this initiative.

5. RESTRUCTURING AND SEVERANCE COSTS (CONTINUED)

Other 2020 Restructuring and Severance Costs

In the year ended December 31, 2020, the Company incurred severance costs of $0.5 million as it integrated the acquisition of Bal Seal, $3.6 million in association with workforce reductions in response to the unprecedented hardships brought on by COVID-19, and $0.3 million in restructuring activities at certain composites businesses to support the ongoing effort of improving capacity utilization and operating efficiency to better position the Company for increased profitability and growth.