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Restructuring, Impairment and Integration Charges, excluding Goodwill Impairments, and Divestitures
12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment and Integration Charges, excluding Goodwill Impairments, and Divestitures

3) Restructuring, Impairment and Integration Charges, excluding Goodwill Impairments, and Divestitures

Restructuring and integration costs totaling $10.0 million and $7.3 million were recognized in the years ended December 31, 2016 and 2015, comprised of initiatives impacting each of our segments.

Within the Precision Bearing Components Group, restructuring initiatives to optimize operations in the U.S., Italy, the Netherlands, Mexico and at segment headquarters resulted in a charge of $4.4 and $2.0 million for the years ended December 31, 2016 and 2015, respectively. These charges consisted primarily of severance and other employee costs relating to personnel reductions.

Within the Autocam Precision Components Group, certain restructuring programs, including the closure of one facility, the Wheeling Plant, resulted in a charge of $4.3 and $2.6 million for the years ended December 31, 2016 and 2015, respectively. These charges consisted of severance costs of $0.8 million, fixed asset impairment of $0.3 million and site closure costs of $3.2 million for 2016.

Within the Precision Engineered Products (“PEP”) Group, initiatives resulted in integration, site closure and employee costs of $1.3 and $0.9 million for the years ended December 31, 2016 and 2015, respectively.

Within the Corporate and Consolidated Segment, a charge of $1.8 million was incurred for an accounting and reporting system that was ultimately never deployed and abandoned for the year ended December 31, 2015.

The following table summarizes restructuring and integration activity related to actions incurred for the years ended December 31, 2016 and 2015:

 

     Year Ended  
     December 31,  
     2016      2015  

Severance and other employee costs

   $ 5,776      $ 2,019  

Site closure and other associated costs

     3,970        4,399  

Integration and other associated costs

     278        850  
  

 

 

    

 

 

 

Total

   $ 10,024      $ 7,268  
  

 

 

    

 

 

 

 

     Reserve                    Reserve  
     Balance at             Paid in      Balance at  
     December 31, 2015      Charges      2016      December 31, 2016  

Severance and other employee costs

   $ 2,517      $ 5,776      $ (5,274    $ 3,019  

Site closure and other associated costs

     1,845        3,970        (4,189      1,626  

Integration and other associated costs

     —          278        (278      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,362      $ 10,024      $ (9,741    $ 4,645  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Reserve             Paid in      Reserve  
     Balance at                Balance at  
     December 31, 2014      Charges      2015      December 31, 2015  

Severance and other employee costs

   $ —        $ 2,691      $ (174    $ 2,517  

Site closure and other associated costs

     —          1,925      $ (80      1,845  

Impairment and write-off charges

     —          2,652      $ —          —    

Integration and other associated costs

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ —        $ 7,268      $ (254    $ 4,362  
  

 

 

    

 

 

    

 

 

    

 

 

 

The total restructuring and impairment costs are still being identified at the various segments; therefore, we are not able to estimate the ultimate costs at this time. We will include in future filings updates to these activities along with a reconciliation of beginning and ending liabilities recorded. The amounts recorded for the year ended December 31, 2016 for restructuring charges that have been incurred are primarily expected to be paid out during 2017. Some amounts related to foreign locations extend through 2021.