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Restructuring Charges

9 Months Ended

Sep. 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 incurred severance costs of $7.0 million to right-size our business. No additional costs will be incurred 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 these property disposals and do not expect to incur additional material property disposal costs under this restructuring plan.

During the third quarter of 2021, management approved and initiated a plan to exit a facility no longer deemed economical for our business. Closing costs incurred during the third quarter were not material, however, we expect to incur approximately $0.8 million to complete the exit of this facility in the fourth quarter of 2021.

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 September 30, 2021
Pandemic restructuring	$	—	$	—	$	224	$	224
Property restructuring - other exit costs		—		—		19		19
Other restructuring		—		—		70		70
Total restructuring charges	$	—	$	—	$	313	$	313

Three months ended September 30, 2020
Organizational restructuring	$	(20)	$	—	$	(13)	$	(33)
Pandemic restructuring		546		644		245		1,435
Property restructuring
Loss on sale		—		—		915		915
Impairment loss		—		—		583		583
Total property restructuring		—		—		1,498		1,498
Total restructuring charges	$	526	$	644	$	1,730	$	2,900

Nine months ended September 30, 2021
Pandemic restructuring	$	616	$	145	$	956	$	1,717
Property restructuring
Impairment loss		—		—		9		9
Other exit costs		—		—		26		26
Total property restructuring		—		—		35		35
Other restructuring		—		—		201		201
Total restructuring charges	$	616	$	145	$	1,192	$	1,953

Nine months ended September 30, 2020
Organizational restructuring	$	458	$	625	$	612	$	1,695
Pandemic restructuring		1,932		931		980		3,843
Property restructuring
Loss on sale		—		—		915		915
Impairment loss		—		—		583		583
Total property restructuring		—		—		1,498		1,498
Total restructuring charges	$	2,390	$	1,556	$	3,090	$	7,036

(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				Nine Months Ended
	September 30,				September 30,
(in thousands)	2021		2020		2021		2020
Severance costs
Organizational restructuring	$	—	$	(33)	$	—	$	1,695
Pandemic restructuring		224		1,435		1,717		3,843
Total severance costs		224		1,402		1,717		5,538
Property disposal costs
Loss on sale		—		915		—		915
Impairment loss		—		583		9		583
Other exit costs		19		—		26		—
Total property disposal costs		19		1,498		35		1,498
Other restructuring costs		70		—		201		—
Total restructuring charges	$	313	$	2,900	$	1,953	$	7,036