Restructuring and Integration Expenses

6 Months Ended

Jun. 30, 2019

Restructuring and Integration Expenses [Abstract]

Note 5. Restructuring and Integration Expenses

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2018 and June 30, 2019 and activity for the six months ended June 30, 2019 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2018	$	742		$	—		$	742
Restructuring and integration costs:
Amounts provided for during 2019		—			644			644
Cash payments		(91	)		(352	)		(443	)
Reclassification to inventory reserves		—			(292	)		(292	)
Exit activity liability at June 30, 2019	$	651		$	—		$	651

Restructuring Costs

Plant Rationalization Program

In February 2016, in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative. As part of the plant rationalization, all of our Grapevine, Texas production activities have been relocated to facilities in Greenville, South Carolina and Reynosa, Mexico, and certain production activities were relocated from our Greenville, South Carolina manufacturing facility to our manufacturing facility in Bialystok, Poland. In addition, certain service functions were relocated from Grapevine, Texas to our administrative offices in Lewisville, Texas and our Grapevine, Texas facility was closed. In December 2018, we completed the sale of the property located in Grapevine, Texas. Net proceeds from the sale of $4.8 million were received in January 2019.

The plant rationalization program is substantially completed. Cash payments made during the first six months of 2019 and the remaining aggregate liability related to the program as of June 30, 2019 consists of severance payments to former employees.

Activity, by segment, for the six months ended June 30, 2019 related to our plant rationalization program consisted of the following (in thousands):

	Engine Management		Temperature Control			Other		Total
Exit activity liability at December 31, 2018	$	—	$	304		$	—	$	304
Restructuring and integration costs:
Amounts provided for during 2019		—		—			—		—
Cash payments		—		(56	)		—		(56	)
Exit activity liability at June 30, 2019	$	—	$	248		$	—	$	248

Orlando Plant Rationalization Program

In January 2017, to further our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative at our Orlando, Florida facility. As part of the Orlando plant rationalization, all of our Orlando, Florida production activities have been relocated to our Independence, Kansas manufacturing facility. In addition, certain production activities were relocated from our Independence, Kansas manufacturing facility to our Reynosa, Mexico manufacturing facility and our Orlando, Florida facility was closed.

The Orlando plant rationalization program is substantially completed. Cash payments made during the first six months of 2019 and the remaining aggregate liability related to the program as of June 30, 2019 consists of severance payments to former employees.

Activity, by segment, for the six months ended June 30, 2019 related to our Orlando plant rationalization program consisted of the following (in thousands):

	Engine Management			Temperature Control		Other		Total
Exit activity liability at December 31, 2018	$	438		$	—	$	—	$	438
Restructuring and integration costs:
Amounts provided for during 2019		—			—		—		—
Cash payments		(35	)		—		—		(35	)
Exit activity liability at June 30, 2019	$	403		$	—	$	—	$	403

Integration Costs

Pollak Relocation

In connection with our April 2019 acquisition of certain assets and liabilities of the Pollak business of Stoneridge, Inc., we expect to incur certain integration expenses in connection with the relocation of certain inventory, machinery, and equipment from Pollak’s distribution and manufacturing facilities in El Paso, Texas, Canton, Massachusetts, and Juarez, Mexico, to our existing facilities in Disputanta, Virginia, Reynosa, Mexico and Independence, Kansas. Total integration expenses of approximately $1.6 million are expected to be incurred related to the relocation. During the six months ended June 30, 2019, integration expenses related to the relocation of $0.6 million were recognized. We anticipate that the Pollak relocation will be completed within 12 months.

Activity, by segment, for the six months ended June 30, 2019 related to the Pollak relocation consisted of the following (in thousands):

	Engine Management			Temperature Control		Other		Total
Exit activity liability at December 31, 2018	$	—		$	—	$	—	$	—
Restructuring and integration costs:
Amounts provided for during 2019		644			—		—		644
Cash payments		(352	)		—		—		(352	)
Reclassification to inventory reserves		(292	)		—		—		(292	)
Exit activity liability at June 30, 2019	$	—		$	—	$	—	$	—