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Restructuring
3 Months Ended
Mar. 31, 2019
Restructuring  
Restructuring

6. Restructuring

 

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

 

In the third quarter of 2018, management initiated restructuring actions primarily associated with the European headquarters as well as cost savings initiatives at certain European manufacturing facilities.  These actions included reductions in force and other related costs within the Company’s Europe segment.  The total restructuring charges associated with the program were initially estimated to be approximately $5.0 million.  The Company increased its total expected pre-tax charges for the program to approximately $6.0 million as of March 31, 2019, primarily related to increased severance and other related costs.  Pre-tax restructuring charges of approximately $1.4 million were incurred for the three months ended March 31, 2019 relating to additional severance benefits and cost cutting actions, resulting in approximately $5.4 million of total program costs incurred to date.   The costs are expected to be fully incurred within the year ending December 31, 2019.  The restructuring reserve associated with these actions was approximately $3.0 million as of March 31, 2019, and primarily relates to severance benefits.