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Restructuring and Other Charges | 12 Months Ended
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Dec. 31, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | 9. Restructuring and Other Charges This footnote was corrected in this Amended Report to state that the inventory write-down from 2021 is a component of “Cost of sales” in our consolidated statements of income (loss). 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 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 2023, the Company incurred $3.2 million of additional costs under the 2021 global strategic plan. The restructuring charges incurred during the current year primarily consist of office moves, site cleanup, preparation costs, severance, consulting and legal fees. During the second quarter of 2023, the Company reassessed the reasonability of a restructuring liability related to its Well Construction business. During our assessment certain market exit costs became known and the liability was adjusted accordingly, resulting in a release of approximately $2.3 million, which partially offsets the current year restructuring costs. Severance charges totaled approximately $0.4 million for the year. During 2022, the Company incurred $13.4 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. Severance charges related to restructuring plan totaled approximately $0.9 million for the year. Other charges totaled $6.8 million and consisted of consulting and legal fees, office moves, site cleanup and preparation costs. 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. The following table summarizes the components of charges included in “Restructuring and other charges” except for the inventory write-down which is a component of “Cost of sales” in our consolidated statements of income (loss) for the year ended December 31, 2023, 2022 and 2021 (in thousands):
|  | Year Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |  |  | December 31, 2021 |
Inventory write-down |  | $ | - |  |  | $ | - |  |  | $ | 66,910 |
Severance |  |  | 374 |  |  |  | 951 |  |  |  | 3,760 |
Long-lived asset write-down |  |  | - |  |  |  | 5,678 |  |  |  | 4,240 |
Other |  |  | 2,871 |  |  |  | 6,735 |  |  |  | 4,023 |
|  | $ | 3,245 |  |  | $ | 13,364 |  |  | $ | 78,933 |
The following table summarizes the changes to our accrued liability balances related to restructuring and other charges as of December 31, 2023 (in thousands):
|  | Total |
Balance at December 31, 2022 |  | $ | 3,802 |
Additions for costs expensed |  |  | - |
Reductions for payments |  |  | (645 | )
Other |  |  | (2,527 | )
Ending balance at December 31, 2023 |  | $ | 630 |

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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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