Restructuring and Related Activities

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring And Related Activities Disclosure [Text Block]

Note 7 – Restructuring and Related Activities

During the third quarter of 2019, the Company’s management approved and the Company initiated a global restructuring plan (the “QH Program”) as part of its plan to realize certain cost synergies associated with the Combination. The QH Program will include restructuring and associated severance costs to reduce total headcount by approximately 275 people globally and plans for the closure of certain manufacturing and non-manufacturing facilities. The exact timing and total costs associated with the QH Program will depend on a number of factors and is subject to change; however, the Company currently expects reduction in headcount and site closures to occur over the next two years under the QH Program and estimates that total costs related to the QH Program will approximate one-times the anticipated cost synergies realized. Employee separation benefits will vary depending on local regulations within certain foreign countries and will include severance and other benefits.

All costs incurred to date related to severance costs to reduce headcount and are recorded in Restructuring and related charges in the Company’s Statements of Income. As described in Note 4 of Notes to Consolidated Financial Statements, restructuring and related charges are not included in the Company’s calculation of reportable segments’ measure of earnings and therefore these costs are not reviewed by or recorded to reportable segments.

Activity in the Company’s accrual for restructuring under the QH Program for the year ended December 31, 2019 is as follows:

		QH Program
Accrued restructuring as of December 31, 2018		$	-
	Restructuring expense, net		26,678
	Cash payments		(8,899)
	Currency translation adjustments		264
Accrued restructuring as of December 31, 2019		$	18,043

In response to weak economic conditions and market declines in many regions, the Company’s management approved a global restructuring plan (the “2015 Program”) in the fourth quarter of 2015 and had only $0.7 million of remaining accrued restructuring as of December 31, 2016. The Company completed all of the remaining initiatives under the 2015 Program in the first half of 2017, including final cash payments of $0.7 million. There were no restructuring expenses incurred under the 2015 Program during 2017.