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RESTRUCTURING CHARGES AND IMPAIRMENT
12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES AND IMPAIRMENT

NOTE O – RESTRUCTURING CHARGES AND IMPAIRMENT

 

On November 3, 2016, the Company announced its plan to implement a new corporate structure to better serve its customers. The new corporate structure unified the Company’s sales, pricing, customer service, marketing, and capacity sourcing functions effective January 1, 2017, and allows the Company to operate as one logistics provider under the ArcBest brand. As a result of the restructuring, the Company recorded restructuring charges in operating expenses during the fourth quarter of 2016, the majority of which are non-cash, for impairment of software, contract and lease terminations, severance, and relocation expenses.

 

The following table presents restructuring charges:

 

 

 

 

 

 

 

 

Restructuring

 

 

 

Charges

 

 

    

2016

    

 

 

(in thousands)

Software impairment(1)

 

$

6,244

 

Contract terminations(2)

 

 

2,875

 

Severance and other(3)

 

 

1,194

 

Total charges

 

$

10,313

 


(1)

Non-cash charges related to software and other long-lived assets that will be discontinued.

(2)

Charges associated with the termination of noncancelable lease and consulting agreements.

(3)

Primarily severance payments and related costs resulting from a reduction in headcount of approximately 130 positions.

 

 

The Company estimates it will incur restructuring charges of approximately $2.0 million in 2017 primarily for employee-related costs associated with the plan announced during 2016.