Note 8 – Restructuring and Impairment Charges

Restructuring and Impairment Related to Plant Closure

On July 22, 2019, the Company announced its intention to close its Roanoke, Virginia manufacturing facility as part of its “Back to Basics” strategy and ceased operations at the facility as of November 29, 2019. On January 30, 2020, the Company notified the lessor of its intent to terminate its leases for the facility effective as of March 31, 2020. The cost of the restructuring plan is expected to range between $3,500 and $4,500, excluding the lease termination gain disclosed in Note 3 Leases, and will be incurred by the first half of 2020 (including costs already incurred in 2019). Restructuring and impairment charges related to the plant closure primarily include non-cash impairment charges for property, plant and equipment at the Roanoke facility and employee severance and retention charges. Restructuring and impairment charges have been partially offset by the lease termination gain described in Note 3, Leases.

Goodwill Impairment

As disclosed in Note 2, Summary of Significant Accounting Policies the Company recorded a goodwill impairment charge equal to the total goodwill balance of the Manufacturing reporting unit of $21,521 during 2019.

Restructuring and impairment charges are reported as a separate line item on the Company’s consolidated statements of operations for the year ended December 31, 2019 and are detailed below:


		Year ended
		December 31,
		2019

Impairment charges for leasehold improvements and equipment	$	1,381
Employee severance and retention		1,332
Other charges related to facility closure		582
Lease termination gain		(2,445)
Goodwill impairment		21,521
Total restructuring and impairment costs	$	22,371

There were no restructuring and impairment charges during the year ended December 31, 2018.

Accrued restructuring and impairment charges related to the Manufacturing segment are detailed below:



	Accrued as of December 31, 2018		Cash Charges		Non-cash charges		Cash payments		Accrued as of December 31, 2019

Impairment charges for leasehold improvements and equipment	$	-	$	-	$	1,381	$	-	$	-
Employee severance and retention		-		1,332		-		(685)		647
Other charges related to facility closure		-		560		22		(201)		359
Lease termination gain		-		-		(2,445)		-		-
Goodwill impairment		-		-		21,521		-		-
Total restructuring and impairment costs	$	-	$	1,892	$	20,479	$	(886)	$	1,006