XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.20.2

Restructuring (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring | 2020 Projects On September 17, 2020, our Board of Directors approved a restructuring plan (the 2020 Projects). The 2020 Projects include activities that continue our efforts to optimize our global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are scheduled to be substantially complete by the end of 2022. We estimate pre-tax restructuring charges of $55 million to $65 million, of which approximately $35 million to $45 million will result in cash expenditures, and the remainder relates to non-cash charges. Of the total expected costs, $43.9 million was recognized in the third quarter of 2020. The largest component of expected remaining costs to be recognized is related to a non-cash cumulative translation adjustment charge. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions. The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:
In thousands | Total Expected Costs at September 30, 2020 |  | Costs Recognized in Prior Periods |  | Cost Recognized During the Nine Months Ended September 30, 2020 |  | Expected Remaining Costs to be Recognized at September 30, 2020
Employee severance costs | $ | 36,625 |  |  | $ | — |  |  | $ | 36,625 |  |  | $ | — |
Asset impairments & net loss (gain) on sale or disposal | 7,240 |  |  | — |  |  | 7,240 |  |  | — |
Other restructuring costs | 16,508 |  |  | — |  |  | — |  |  | 16,508 |
Total | $ | 60,373 |  |  | $ | — |  |  | $ | 43,865 |  |  | $ | 16,508 |
2018 Projects On February 22, 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. We expect to substantially complete expense recognition on the plan by the end of 2020. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions. All prior restructuring plans are substantially complete and are not presented below. During the three months ended June 30, 2020, we reversed expenses for employee severance costs and asset impairments we will no longer incur as a result of selling our operations in Latin America. The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:
In thousands | Total Expected Costs at September 30, 2020 |  | Costs Recognized in Prior Periods |  | Cost Recognized During the Nine Months Ended September 30, 2020 |  | Expected Remaining Costs to be Recognized at September 30, 2020
Employee severance costs | $ | 67,663 |  |  | $ | 72,133 |  |  | $ | (4,470) |  |  | $ | — |
Asset impairments & net loss (gain) on sale or disposal | 3,120 |  |  | 3,842 |  |  | (722) |  |  | — |
Other restructuring costs | 21,163 |  |  | 11,420 |  |  | 2,858 |  |  | 6,885 |
Total | $ | 91,946 |  |  | $ | 87,395 |  |  | $ | (2,334) |  |  | $ | 6,885 |
The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and 2018 Projects during the nine months ended September 30, 2020:
In thousands | Accrued Employee Severance |  | Asset Impairments & Net Loss (Gain) on Sale or Disposal |  | Other Accrued Costs |  | Total
Beginning balance, January 1, 2020 | $ | 53,741 |  |  | $ | — |  |  | $ | 2,366 |  |  | $ | 56,107 |
Costs charged to expense | 32,155 |  |  | 6,518 |  |  | 2,858 |  |  | 41,531 |
Cash (payments) receipts | (10,180) |  |  | 1,880 |  |  | (2,629) |  |  | (10,929) |
Net assets disposed and impaired | — |  |  | (8,398) |  |  | — |  |  | (8,398) |
Effect of change in exchange rates | 1,358 |  |  | — |  |  | 12 |  |  | 1,370 |
Ending balance, September 30, 2020 | $ | 77,074 |  |  | $ | — |  |  | $ | 2,607 |  |  | $ | 79,681 |
Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results. Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, and costs to exit the facilities once the operations in those facilities have ceased. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset. Restructuring expense is part of the Corporate unallocated segment and is not part of the operating segments. The current portion of restructuring liabilities was $24.6 million and $18.9 million as of September 30, 2020 and December 31, 2019. The current portion of restructuring liabilities is classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances was $55.1 million and $37.2 million as of September 30, 2020 and December 31, 2019. The long-term portion of restructuring liabilities is classified within other long-term obligations on the Consolidated Balance Sheets and includes severance accruals and facility exit costs.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration