XML 67 R49.htm IDEA: XBRL DOCUMENT v3.20.1
Asset Impairment Charges and Prepetition Facility Closing and Restructuring Costs (Tables)
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Schedule of Approved Plans and Related Charges
Costs associated with approved plans within our ongoing network optimization and reorganization strategies are summarized as follows:
 
Year Ended December 31
 
2019
 
2018
 
2017
 
(In thousands)
Closure of facilities, net(1)
$
11,608

 
$
60,460

 
$
12,703

Organizational effectiveness(2)
—

 
(331
)
 
12,210

Enterprise-wide cost productivity plan(3)
5,409

 
14,863

 
—

Prepetition facility closing and restructuring costs, net
$
17,017

 
$
74,992

 
$
24,913

(1)
Reflects charges, net of gains on the sales of assets, associated with closed facilities that were incurred in 2019, 2018 and 2017. These charges are primarily related to facility closures in McKinney, TX; Braselton, GA; Louisville, KY; Erie, PA; Huntley, IL; Thief River Falls, MN; Lynn, MA; Livonia, MI; Richmond, VA; Orem, UT; New Orleans, LA; Rochester, IN; Riverside, CA; Denver, CO; and Buena Park, CA. We have incurred net charges to date of $123.1 million related to these facility closures through December 31, 2019. We expect to incur additional charges related to these facility closures of approximately $4.1 million related to shutdown, contract termination and other costs.
(2)
During 2017, we initiated a company-wide, multi-phase organizational effectiveness assessment to better align each key function of the Company with our strategic plan. This initiative has resulted in headcount reductions due to changes to our organizational structure, and the charges shown in the table above are primarily comprised of severance benefits and other employee-related costs associated with these organizational changes. We do not expect to incur any material additional costs associated with this initiative.
(3)
In the fourth quarter of 2017, we announced an enterprise-wide cost productivity plan, which includes rescaling our supply chain, optimizing spend management and integrating our operating model. This plan has resulted in headcount reductions due to changes to our organizational structure, and the charges shown in the table above are primarily comprised of severance benefits and other employee-related costs associated with these changes. Efforts with respect to the enterprise-wide cost productivity plan are ongoing, and we expect that we will incur additional costs in the coming months associated with the approval and implementation of an additional phase of the plan; however, as specific details of this phase have not been finalized and approved, future costs are not yet estimable.
Schedule of Facility Closing and Restructuring Costs
Activity for 2019 and 2018 with respect to prepetition facility closing and restructuring costs is summarized below and includes items expensed as incurred:
 
Accrued Charges at
December 31, 2017
 
Charges and Adjustments
 
Payments
 
Accrued Charges at
December 31, 2018
 
Charges and Adjustments
 
Payments
 
Accrued Charges at
December 31, 2019(1)
 
(In thousands)
Cash charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Workforce reduction costs
$
5,863

 
$
27,460

 
$
(20,110
)
 
$
13,213

 
$
4,920

 
$
(11,603
)
 
$
6,530

Shutdown costs
—

 
7,349

 
(7,349
)
 
—

 
6,859

 
(6,859
)
 
—

Lease obligations after shutdown
2,606

 
143

 
(1,381
)
 
1,368

 
320

 
(1,141
)
 
547

Other
—

 
465

 
(465
)
 
—

 
2,665

 
(2,665
)
 
—

Subtotal
$
8,469

 
35,417

 
$
(29,305
)
 
$
14,581

 
14,764

 
$
(22,268
)
 
$
7,077

Non-cash charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Write-down of assets(2)
 
 
45,450

 
 
 
 
 
5,109

 
 
 
 
(Gain) loss on sale of related assets
 
 
(6,062
)
 
 
 
 
 
(2,950
)
 
 
 
 
Other, net
 
 
187

 
 
 
 
 
94

 
 
 
 
Subtotal
 
 
39,575

 
 
 
 
 
2,253

 
 
 
 
Total
 
 
$
74,992

 
 
 
 
 
$
17,017

 
 
 
 
(1)
As a result of the bankruptcy filing, all accrued charges at December 31, 2019 were reclassified as Liabilities Subject to Compromise on the Consolidated Balance Sheet. See Note 2 for additional information.
(2)
The write-down of assets relates primarily to owned buildings, land and equipment of those facilities identified for closure. The assets were tested for recoverability at the time the decision to close the facilities was more likely than not to occur. Over time, refinements to our estimates used in testing for recoverability may result in additional asset write-downs. The write-down of assets can include accelerated depreciation recorded for those facilities identified for closure. Our methodology for testing the recoverability of the assets is consistent with the methodology described in the “Asset Impairment Charges” section above.