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Restructuring and Other Charges | 12 Months Ended
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Dec. 31, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | 7. Restructuring and Other Charges Restructuring and other charges consist of costs associated with our 2021 global strategic plan initiated in the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions. Prior to the 2021 global strategic plan, restructuring and other charges were incurred as part of the 2018 global strategic plan, initiated to realign our manufacturing facilities globally and which concluded as of the third quarter of 2021. During 2022, the Company incurred $11.4 million of additional costs under the 2021 global strategic plan. These charges were primarily related to write-downs of long-lived assets, severance and other charges. Long-lived asset write-downs consisted of $3.2 million for the Houston corporate administrative building and $2.5 million for obsolete machinery and equipment. Other charges totaled $4.8 million and consisted of consulting and legal fees, office moves, site cleanup and preparation costs. Severance charges totaled approximately $0.9 million for the year. During 2021, the Company incurred restructuring charges under the 2018 global strategic plan as we exited from certain underperforming countries and markets and shifted from manufacturing in-house to a vendor outsourcing model which resulted in inventory write-downs of approximately $19.3 million, severance charges of $2.7 million and other charges of $4.0 million, consisting of facilities-related market exit costs and consulting fees. Additionally, as part of the 2021 global strategic plan we discontinued certain product categories which resulted in inventory write-downs, long-lived asset write-downs and severance charges of approximately $47.7 million, $4.2 million, and $1.0 million, respectively, during the fourth quarter of 2021. During 2020, the overall offshore market conditions declined as a result of the COVID-19 pandemic and developments in global oil markets and decreases in our customers’ capital budgets. As such, we incurred additional costs under our existing 2018 global strategic plan to realign our manufacturing facilities globally. We incurred restructuring and other charges of $35.4 million related to non-cash inventory write-downs, severance, long-lived asset write-downs and other charges of approximately $17.3 million, $8.4 million, $8.3 million, and $1.4 million, respectively, for the year ended December 31, 2020. Other charges consisted primarily of professional fees related to the global strategic plan. The following table summarizes the components of charges included in “Restructuring and other charges” in our Consolidated Statements of Income (Loss) for the year ended December 31, 2022, 2021 and 2020 (in thousands):
|  | Year Ended |
|  | December 31, 2022 |  |  | December 31, 2021 |  |  | December 31, 2020 |
Inventory write-down |  | $ | - |  |  | $ | 66,910 |  |  | $ | 17,272 |
Severance |  |  | 951 |  |  |  | 3,760 |  |  |  | 8,462 |
Long-lived asset write-down |  |  | 5,678 |  |  |  | 4,240 |  |  |  | 8,269 |
Other |  |  | 4,814 |  |  |  | 4,023 |  |  |  | 1,377 |
|  | $ | 11,443 |  |  | $ | 78,933 |  |  | $ | 35,380 |
The following table summarizes the changes to our accrued liability balances related to restructuring and other charges as of December 30, 2022 (in thousands):
|  | December 31, 2022 |
Balance at January 1, 2022 |  | $ | 4,000 |
Additions for costs expensed |  |  | 5,765 |
Reductions for payments |  |  | (5,968 | )
Other |  |  | 5 |
Ending balance at December 31, 2022 |  | $ | 3,802 |

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- 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
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