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RESTRUCTURING AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND ASSET IMPAIRMENTS

RESTRUCTURING AND ASSET IMPAIRMENTSDuring the second quarter of 2020 the COVID-19 pandemic-related collapse in oil and gas demand led to a downturn in well completions and the corresponding demand for DynaEnergetics’ products. As a result, DynaEnergetics recorded asset impairment charges of $1,181 on certain manufacturing assets that will no longer be utilized in production at its Blum, Texas and Troisdorf, Germany facilities. Additionally, both DynaEnergetics and NobelClad further reduced the respective workforces during the quarter. Finally, DynaEnergetics continued activities to prepare its Tyumen, Siberia facility for sale. As of June 30, 2020, total DynaEnergetics Siberia’s assets classified as held for sale were $421. We expect the sale of the remaining assets will be finalized during the third quarter.

During the first quarter of 2020, DMC reduced its workforce by 264 positions to address a sharp decline in well completions in the Company’s core oil and gas end market principally due to the COVID-19 pandemic. The workforce reduction impacted full-time, part-time and temporary direct-labor roles in manufacturing and assembly at DynaEnergetics as well as general and administrative positions at DynaEnergetics, NobelClad, and at DMC’s corporate office.

During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France. During the second quarter of 2019, NobelClad sold its production facility and related assets and other machinery and equipment to third-parties for a gain of $519. Additionally, it moved certain machinery and equipment to its manufacturing facility in Germany. During the second quarter of 2019, NobelClad also recorded an additional accrual of $712 for known and probable severance liabilities related to employees terminated as part of closing the manufacturing operations in France. The additional severance accrual was recorded based, in part, on a successful appeal of the severance benefits by some terminated employees during the second quarter of 2019.

Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses, net and asset impairments” line item in our Condensed Consolidated Statements of Operations:

			Three months ended June 30, 2020
			Severance						Asset impairment												Equipment Moving Costs						Other Exit Costs						Total
NobelClad			$	191					$	—											$	—					$	4					$	195
DynaEnergetics			121						1,181												126						423						1,851
Total			$	312					$	1,181											$	126					$	427					$	2,046

			Three months ended June 30, 2019
			Severance						Gain on asset disposal						Contract Termination Costs									Equipment Moving Costs						Other Exit Costs						Total
NobelClad			$	712					$	(519)					$	4								$	82					$	45					$	324

			Six months ended June 30, 2020
			Severance						Asset impairment						Contract Termination Costs						Equipment Moving Costs						Other Exit Costs						Total
NobelClad			$	244					$	—					$	—					$	—					$	10					$	254
DynaEnergetics			828						1,181						11						126						643						2,789
Corporate			119						—						—						—						—						119
Total			$	1,191					$	1,181					$	11					$	126					$	653					$	3,162

			Six months ended June 30, 2019
			Severance						Gain on asset disposal						Contract Termination Costs						Equipment Moving Costs						Other Exit Costs						Total
NobelClad			$	712					$	(636)					$	43					$	227					$	56					$	402

During the six months ended June 30, 2020, the changes to the restructuring liability associated with these programs is summarized below:

			December 31, 2019						Net expense (1)						Payments and Other Adjustments						Currency Adjustments						June 30, 2020
Severance			$	2,404					$	1,191					$	(1,302)					$	(168)					$	2,125
Contract termination costs			—						11						—						(1)						10
Equipment moving costs			—						126						(126)						—						—
Other exit costs			271						653						(989)						141						76
Total			$	2,675					$	1,981					$	(2,417)					$	(28)					$	2,211

(1) Excludes asset impairment expenses

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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