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Restructuring and Impairment | 9 Months Ended
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Sep. 30, 2015
Restructuring and Impairment [Abstract] |
Restructuring and Impairment | 4. RESTRUCTURING AND IMPAIRMENT During the second quarter of 2015, the Company began evaluating improvement strategies intended to reorganize, simplify and cut costs from operations through closer business integration, pursuant to a restructuring and integration plan to be carried out in stages and completed by mid-2016. In August 2015, management finalized and commenced execution of its plan, which includes a consolidation of the Company’s six manufacturing facilities into three locations, workforce reductions, staff relocations and measures to more closely align product lines and supply chains across business units, among other actions that have and will result in the recognition of certain restructuring, integration and impairment expenses. The following is a summary of the components of restructuring, integration and impairment expenses, before taxes, during the three months ended September 30, 2015 (in thousands):
| T&D |  | Critical Power |  |
Three Months Ended September 30, 2015 | Segment |  | Segment |  | Total
Employee severance and related costs | $ | 36 |  | $ | - |  | $ | 36
Lease termination and other facility costs |  | 143 |  |  | 81 |  |  | 224
Business integration expenses |  | 607 |  |  | 1 |  |  | 608
Non-cash asset impairments |  | 2,556 |  |  | - |  |  | 2,556
Other costs |  | 15 |  |  | - |  |  | 15
Pre-tax restructuring, integration and impairment expense | $ | 3,357 |  | $ | 82 |  | $ | 3,439
There were no restructuring, integration or impairment expenses incurred during the six month period ended June 30, 2015, nor during the three and nine month periods ended September 30, 2014. Employee severance and related costs consists of retention pay and severance benefits. Lease termination and other facility costs include contract termination and exit costs. Business integration expenses include inventory obsolescence as a result of product line integration, travel, and third-party information technology costs. Asset impairments includes the write-down of the Company’s Canadian dry-type transformer facility, excess machinery and equipment held for sale in preparation for the plant consolidations, and certain intangible assets associated with products the Company no longer expects to continue to produce and sell. Other costs consists primarily of legal expenses incurred in connection with implementing the restructuring plan. Charges associated with each action were included in restructuring, integration and impairment expenses in our consolidated operating statement, and reflected in our table of Operating Income (Loss) by segment group in Note 13 – Business Segment and Geographic Information. Upon completing the remaining restructuring and integration actions during the fourth quarter of 2015 and first quarter of 2016, the Company expects to recognize an additional $0.8 to $1.0 million of expenses payable in cash, of which over 90% is expected to be incurred by its T&D Solutions Segment. The components and changes in the Company’s restructuring liability were as follows:
|  |  | Facility |  |  |  |  |
| Severance and |  | Closure and |  | Asset |  |
| Related |  | Exit Costs |  | Write-downs |  | Total
Restructuring liability as of December 31, 2014 | $ | - |  | $ | - |  | $ | - |  | $ | -
Restructuring, integration and impairment expense |  | 36 |  |  | 266 |  |  | 3,136 |  |  | 3,438
Cash paid |  | (18) |  |  | (145) |  |  | - |  |  | (163)
Other |  | - |  |  | - |  |  | (3,136) |  |  | (3,136)
Restructuring liability as of September 30, 2015 | $ | 18 |  | $ | 121 |  | $ | - |  | $ | 139

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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