Restructuring and Integration Costs

6 Months Ended

Jun. 30, 2016

Restructuring and Integration Costs [Abstract]

Note 4. Restructuring and Integration Costs

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities, including the plant rationalization program and other prior year restructuring programs as of December 31, 2015 and June 30, 2016 and activity for the six months ended June 30, 2016 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2015	$	270		$	591		$	861
Restructuring and integration costs:
Amounts provided for during 2016		1,012			—			1,012
Cash payments		(165	)		(42	)		(207	)
Exit activity liability at June 30, 2016	$	1,117		$	549		$	1,666

Plant Rationalization Program

In February 2016, in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative. As part of the plant rationalization, we plan to relocate certain production activities from our Grapevine, Texas manufacturing facility to facilities in Greenville, South Carolina and Reynosa, Mexico, relocate certain service functions from Grapevine, Texas to our administrative offices in Lewisville, Texas, and close our Grapevine, Texas facility. In addition, certain production activities will be relocated from our Greenville, South Carolina manufacturing facility to our manufacturing facility in Bialystok, Poland. Restructuring and integration expenses expected to be incurred related to the program of approximately $5 million, consisting of employee severance and relocation of certain machinery and equipment, will be recognized throughout the program. During the six months ended June 30, 2016, we recognized $1 million of restructuring and integration expenses related to the program. We anticipate that the plant rationalization will be completed by February 2018.

Activity, by segment, for the six months ended June 30, 2016 related to our plant rationalization program consisted of the following (in thousands):

	Engine Management			Temperature Control			Other		Total
Exit activity liability at December 31, 2015	$	—		$	—		$	—	$	—
Restructuring and integration costs:
Amounts provided for during 2016		99			904			—		1,003
Cash payments		(99	)		(40	)		—		(139	)
Exit activity liability at June 30, 2016	$	—		$	864		$	—	$	864

Prior Year Programs

Liabilities associated with the prior year restructuring and integration programs of $0.8 million as of June 30, 2016 relate primarily to employee severance and other retiree benefit enhancements to be paid through 2020 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site. Restructuring and integration expenses for these programs for the six months ended June 30, 2016 and 2015 were not material.