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Restructuring
6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring

4. Restructuring

In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”), a rotational molding business within the Material Handling Segment. The Company is consolidating certain manufacturing operations into a new facility in Bristol, Indiana (the “Ameri-Kart Plan”). In December 2019, as amended in March 2021, Ameri-Kart entered into a lease agreement for a newly constructed manufacturing and distribution facility in Bristol, Indiana. The building became substantially complete in March 2021 as defined in the lease agreement, and the 15-year finance lease of the new Bristol facility commenced. In connection with the lease agreement, Ameri-Kart agreed to sell its original Bristol facility and lease it back for a period of 5 years. During the second quarter of 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a gain of $1.0 million, and the lease back commenced. The new Bristol facility is in service and the original facility has been closed. Remaining costs to complete this consolidation are expected to be approximately $2.7 million, including approximately $0.4 million in 2023 related to remaining equipment moves and $2.3 million to be incurred through 2026 related to remaining lease and maintenance costs for the idled facility.

The Company incurred $0.2 million and $0.5 million of restructuring charges related to the initiatives discussed above during the quarter and six months ended June 30, 2023, respectively, and $0.4 million of restructuring charges during the six months ended June 30, 2022, which were recorded within Cost of sales and Selling, General and Administrative. The Company also incurred $0.3 million related to loss on disposal of fixed assets during the six months ended June 30, 2022. Accrued and unpaid restructuring expenses were not significant at June 30, 2023 or December 31, 2022.

Severance charges from other restructuring initiatives to reduce overhead costs during the quarter and six months ended June 30, 2023 totaled $0.1 million and $0.4 million, respectively which were recorded within Selling, General and Administrative. Accrued and unpaid costs for these initiatives were not significant at June 30, 2023. Remaining costs associated with these other restructuring initiatives are not expected to be meaningful.