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Restructuring
3 Months Ended
Aug. 01, 2020
Restructuring And Related Activities [Abstract]  
Restructuring

Note 3.

Restructuring

 

The Company continually monitors market factors and industry trends and takes necessary actions to reduce overall costs and improve operational profitability. In the three months ended August 1, 2020, the Company initiated certain restructuring actions in response to the adverse impacts from the COVID-19 pandemic. These actions included plant consolidations and workforce reductions in the Automotive, Industrial and Interface segments. In the three months ended August 1, 2020, the Company recognized $3.4 million of restructuring costs. These charges consist of $1.9 million recorded in cost of products sold and $1.5 million recorded in selling and administrative expenses.

Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges primarily relate to the impairment of right-of-use lease assets. Contract termination costs are recorded when notification of termination is given to the other party. The following is a rollforward of the Company's restructuring activity for the three months ended August 1, 2020:

 

 

 

 

 

 

 

 

 

 

Utilization

 

 

 

 

 

(Dollars in Millions)

 

Accrual as of

May 2, 2020

 

 

YTD Charges

 

 

Cash

 

 

Non-cash

 

 

Accrual as of

August 1, 2020

 

Employee Termination Benefits

 

$

0.2

 

 

$

2.5

 

 

$

(1.1

)

 

$

 

 

$

1.6

 

Asset Impairment Charges

 

 

 

 

 

0.3

 

 

 

 

 

 

(0.3

)

 

 

 

Contract Termination Costs

 

 

 

 

 

0.6

 

 

 

 

 

 

 

 

 

0.6

 

Total

 

$

0.2

 

 

$

3.4

 

 

$

(1.1

)

 

$

(0.3

)

 

$

2.2

 

 

The table below presents restructuring costs by reportable segment:

 

 

 

Three Months Ended

 

(Dollars in Millions)

 

August 1, 2020

 

 

July 27, 2019

 

Automotive

 

$

2.0

 

 

$

 

Industrial

 

 

0.6

 

 

 

 

Interface

 

 

0.7

 

 

 

 

Medical

 

 

 

 

 

 

Eliminations/Corporate

 

 

0.1

 

 

 

 

Total Restructuring Costs

 

$

3.4

 

 

$

 

Estimates of restructuring expense are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals. The Company expects to incur additional restructuring costs of approximately $2.0 million during the current fiscal year related to the initiated restructuring programs and may take additional restructuring actions in future periods based upon market conditions and industry trends.