Restructuring (Notes)

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING

On July 30, 2014, we announced the planned closure of our wheel manufacturing facility located in Rogers, Arkansas. During the fourth quarter of 2014, we shifted production to our other locations and closed operations at the Rogers facility. The closure resulted in a reduction of workforce of approximately 500 employees. The action was necessary in order to reduce costs and enhance our global competitive position. In addition, other measures were taken to reduce costs including the planned sale of the company's two aircraft. One airplane was sold for cash in September 2014 incurring a $0.2 million loss on sale. The remaining airplane is classified as held-for-sale with a carrying value of $0.9 million and is included in other current assets on our consolidated balance sheet at December 31, 2014. In February 2015, this airplane was also sold.

Included in selling, general and administrative expense in the consolidated income statements for the year ended December 31, 2014 are charges totaling $1.1 million to reduce the carrying balance of the aircraft held for sale to its estimated fair value. Cost of sales for the year ended December 31, 2014 includes $5.4 million of depreciation accelerated due to shorter useful lives for assets to be retired after operations ceased at the Rogers facility.

As noted above, the operations ceased at the Rogers facility during the fourth quarter of 2014. We are readying the property for sale and currently expect to actively market the property for sale in the near future. Based on the current carrying value of the land and building of $3.2 million, we do not expect a loss on sale at this time. In addition, after production ceased at the facility, machinery and equipment to be held and used at our other plants will be transferred, with the carrying values depreciated over the remaining estimated useful lives of these assets.

The total cost expected to be incurred as a result of the Rogers facility closure is $10.6 million, of which $8.4 million has been recognized as of December 31, 2014. The following table summarizes the Rogers, Arkansas plant closure costs and classification in the consolidated income statement for the year ended December 31, 2014:

	Costs Incurred Through December 31, 2014		Costs Remaining		Total Expected Costs		Classification
(Dollars in thousands)
Accelerated depreciation of assets abandoned	$	5,365	$	—	$	5,365	Cost of sales, Restructuring costs
Severance costs	1,897		148		2,045		Cost of sales, Restructuring costs
Equipment removal, inventory written-down, lease termination and other costs	1,167		1,997		3,164		Cost of sales, Restructuring costs
	$	8,429	$	2,145	$	10,574

Costs associated with the severance arrangements are being recognized ratably over the requisite service periods.

Changes in the accrued expenses related to restructuring liabilities during the year ended December 31, 2014 are summarized as follows:

Year Ended December 31,	2014
(Dollars in thousands)
Balance January 1, 2014	$	—
Restructuring accruals - severance costs	1,897
Cash payments	(1,682		)
Balance December 31, 2014	$	215