Restructuring and Integration Expenses

9 Months Ended

Sep. 30, 2020

Restructuring and Integration Expenses [Abstract]

Note 4. 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, 2019 and September 30, 2020 and activity for the nine months ended September 30, 2020 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2019	$	336		$	—		$	336
Restructuring and integration costs:
Amounts provided for during 2020		—			464			464
Cash payments		(94	)		(214	)		(308	)
Reclassification of environmental liability (1)		—			(250	)		(250	)
Exit activity liability at September 30, 2020	$	242		$	—		$	242

(1)

Included in restructuring and integration costs in the nine months ended September 30, 2020 is a $0.3 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of September 30, 2020.

Restructuring Costs

Plant Rationalization Program

In February 2016, in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we implemented 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; certain production activities at our Greenville, South Carolina facility were moved to our facility in Bialystok, Poland; certain service functions were relocated from Grapevine, Texas to our administrative offices in Lewisville, Texas; and our vacated Grapevine, Texas facility was sold.

The Plant Rationalization Program has been completed. Cash payments made of $59,000 during the nine months ended September 30, 2020, and the remaining aggregate liability related to the program as of September 30, 2020 of $117,000 consists of severance payments to former Temperature Control employees.

Orlando Plant Rationalization Program

In January 2017, to further our ongoing efforts to improve operating efficiencies and reduce costs, we implemented a plant rationalization initiative at our Orlando, Florida facility. As part of the initiative, all of our Orlando, Florida production activities were moved to our facility in Independence, Kansas; certain production activities at our Independence, Kansas facility were moved to our facility in Reynosa, Mexico; and our Orlando, Florida facility was closed.

The Orlando Plant Rationalization Program has been completed. Cash payments made of $35,000 during the nine months ended September 30, 2020, and the remaining aggregate liability related to the program as of September 30, 2020 of $125,000 consists of severance payments to former Engine Management employees.

Integration Costs

Pollak Relocation

In connection with our April 2019 acquisition of certain assets and liabilities of the Pollak business of Stoneridge, Inc., we incurred 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.

The Pollak Relocation has been completed. Integration expense recognized and cash payments made of $214,000 during the nine months ended September 30, 2020 related to residual relocation activities in our Engine Management segment. There is no remaining aggregate liability related to the Pollak Relocation as of September 30, 2020.