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Restructuring Charges

12 Months Ended

Dec. 31, 2021

19. 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 costs as a result of these property disposals. No additional costs will be incurred 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, and in the fourth quarter, we incurred $0.9 million of costs to complete the exit of this facility. We do not expect to incur additional material costs under this restructuring plan.

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

The following table presents the changes to our accrued liability balance related to restructuring charges during the year ended December 31, 2021:


			2020		2021
	Pandemic		Property		Property		Other
(in thousands)	Restructuring		Restructuring		Restructuring		Restructuring		Total
Balance at December 31, 2020	$	201	$	—	$	—	$	—	$	201
Charges incurred		1,717		35		929		222		2,903
Payments		(1,918)		(35)		(929)		(222)		(3,104)
Balance at December 31, 2021	$	—	$	—	$	—	$	—	$	—

The following table presents restructuring charges incurred by segment:


	Contract		Aftermarket
(in thousands)	Operations		Services		Other⁽¹⁾		Total
Year ended December 31, 2021
Pandemic restructuring	$	616	$	145	$	956	$	1,717
2020 Property restructuring - other exit costs		—		—		35		35
2021 Property restructuring - other exit costs		929		—		—		929
Other restructuring		—		—		222		222
Total restructuring charges	$	1,545	$	145	$	1,213	$	2,903

Year ended December 31, 2020
Organizational restructuring	$	458	$	625	$	612	$	1,695
Pandemic restructuring		2,505		1,218		1,534		5,257
2020 Property restructuring
Loss on sale		—		—		915		915
Impairment loss		—		—		583		583
Total 2020 Property restructuring		—		—		1,498		1,498
Total restructuring charges	$	2,963	$	1,843	$	3,644	$	8,450

(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:


	Years Ended December 31,
(in thousands)	2021		2020
Severance costs
Organizational restructuring	$	—	$	1,695
Pandemic restructuring		1,717		5,257
Total severance costs		1,717		6,952
Property disposal costs
Loss on sale		—		915
Impairment loss		—		583
Other exit costs		964		—
Total property disposal costs		964		1,498
Other restructuring costs		222		—
Total restructuring charges	$	2,903	$	8,450