Restructuring Charges

6 Months Ended

Jun. 30, 2021

14. Restructuring Charges

During the first quarter of 2020, we completed restructuring activities to further streamline our organization and more fully align our teams to improve our customer service and profitability. We incurred severance costs of $1.7 million related to these activities during the first quarter of 2020. No additional costs will be incurred for this organizational restructuring.

In response to the decreased activity level of our customers that resulted from the COVID-19 pandemic beginning in the second quarter of 2020, we have incurred severance costs of $6.8 million to right-size our business. We do not expect to incur additional material severance costs under this restructuring plan.

During the third quarter of 2020, a plan to dispose of certain non-core properties was approved by management. We have incurred $1.5 million of restructuring costs as a result of our property disposals and do not expect to incur additional material property disposal costs under this restructuring plan.

The severance and property disposal costs incurred under the above restructuring plans were recorded to restructuring charges in our condensed consolidated statements of operations.

The following table presents restructuring charges incurred by segment:


	Contract		Aftermarket
(in thousands)	Operations		Services		Other⁽¹⁾		Total
Three months ended June 30, 2021
Pandemic restructuring	$	337	$	121	$	147	$	605
Property restructuring		—		—		7		7
Other restructuring		—		—		131		131
Total restructuring charges	$	337	$	121	$	285	$	743

Three months ended June 30, 2020
Pandemic restructuring	$	1,386	$	286	$	736	$	2,408

Six months ended June 30, 2021
Pandemic restructuring	$	616	$	145	$	732	$	1,493
Property restructuring		—		—		16		16
Other restructuring		—		—		131		131
Total restructuring charges	$	616	$	145	$	879	$	1,640

Six months ended June 30, 2020
Organizational restructuring	$	478	$	625	$	625	$	1,728
Pandemic restructuring		1,386		286		736		2,408
Total restructuring charges	$	1,864	$	911	$	1,361	$	4,136

(1)	Represents expense incurred within our corporate function and not directly attributable to our segments.

The following table presents restructuring charges incurred by cost type:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2021		2020		2021		2020
Severance costs
Organizational restructuring	$	—	$	—	$	—	$	1,728
Pandemic restructuring		605		2,408		1,493		2,408
Total severance costs		605		2,408		1,493		4,136
Property disposal costs
Impairment loss		—		—		9		—
Other exit costs		7		—		7		—
Total property disposal costs		7		—		16		—
Other restructuring costs		131		—		131		—
Total restructuring charges	$	743	$	2,408	$	1,640	$	4,136