Restructuring Activities (Notes)

12 Months Ended

Dec. 31, 2016

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Activities

Due to economic conditions, including low energy prices and global competition, the Company implemented a number of cost reduction or avoidance actions during 2015 and 2016, including headcount reductions. During the year ended December 31, 2016, the Company incurred severance and other restructuring charges of $10,928 associated with headcount reductions in all of its segments. These charges were recorded in cost of sales ($4,412) and selling, general, and administrative expenses ($6,516) in the consolidated statement of operations. For the year ended December 31, 2015, the Company incurred severance expense of $7,448, primarily recorded in selling, general and administrative expenses in the consolidated statement of operations. The Company currently expects additional severance and restructuring charges in 2017 to be approximately $10,400 (Corporate - $3,300, BioMedical - $2,900, E&C - $3,000 and D&S - $1,200). The Company is closely monitoring its end markets and order rates and will continue to take appropriate and timely actions as necessary.

During 2015, Chart announced its intention to close certain D&S leased facilities. These closures were cost reduction measures in response to lower orders within D&S. Total cost incurred during 2015 related to these closures was $4,810 and include lease exit costs, long-lived asset impairment charges, and other miscellaneous costs. Approximately $1,700 of these costs were included in cost of sales, $2,960 of these costs were included in selling, general and administrative expenses and $150 of these costs were included in asset impairment in the consolidated statements of operations. The remaining accrual for the facility restructuring costs within the D&S segment as of December 31, 2016 was $2,152. These costs are expected to be paid out over the terms of the associated leases which are expected to end in 2023.

The following tables summarize the Company’s restructuring activities for the year ended December 31, 2016:




	Energy & Chemicals			Distribution & Storage			BioMedical			Corporate			Total
Balance as of December 31, 2015	$	1,106		$	3,446		$	430		$	850		$	5,832
Restructuring charges	962			3,842			1,957			4,167			10,928
Cash payments and other	(1,941		)	(4,424		)	(1,079		)	(1,992		)	(9,436		)
Balance as of December 31, 2016	$	127		$	2,864		$	1,308		$	3,025		$	7,324