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RESTRUCTURING AND INTEGRATION

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND INTEGRATION

3. RESTRUCTURING AND INTEGRATION

During the second quarter of 2015, the Company began evaluating improvement strategies intended to reorganize, simplify and reduce costs from operations through closer business integration, pursuant to a restructuring and integration plan to be carried out in stages with an original completion date by mid-2016.

In the T&D Segment, the relocation of our Medium Voltage Transformer line began as of the end of 2016, and was completed in the first half of 2017. Included in cost of goods sold of T&D Segment is a restructuring charge of $873 related to write off of raw material inventory not relocated from Canada to Mexico. In the Critical Power segment, the relocation of the facility began in 2015 and was completed in 2016 which resulted in additional costs incurred in 2016.

The following is a summary of the components of restructuring and integration expenses, before taxes, relating to operating expenses during the years ended December 31, 2017 and 2016:

Year Ended December 31, 2017		T&D Segment				Critical Power Segment				Total
Business integration expenses			215				—				215
Pre-tax restructuring and integration expense		$	215			$	—			$	215

For the year ended December 31, 2017, the business integration expenses occurred due to completing the relocation of Bemag’s production to a lower cost facility.

Year Ended December 31, 2016		T&D Segment				Critical Power Segment				Total
Lease termination and other facility costs		$	1,122			$	—			$	1,122
Business integration expenses			900				—				900
Other costs			150				32				182
Pre-tax restructuring and integration expense		$	2,172			$	32			$	2,204

For the year ended December 31, 2016, the lease termination and other facility costs include contract exit and excess production costs due to deferring relocation of Bemag. Business integration expenses include inventory obsolescence as a result of product line integration and relocation costs of Bemag’s low voltage production facility. Other costs consist primarily of cost over runs on the 2015 restructuring accruals.

Charges associated with each action were included in restructuring, integration and impairment expenses in our consolidated statement of operations, and reflected in our table of Operating Income (Loss) by segment group in Note 16 – Business Segment and Geographic Information.

The components and changes in the Company’s restructuring liability were as follows:

		Severance and Related				Product Line Harmonization				Facility Closure and Exit Costs				Total
Restructuring liability as of January 1, 2016		$	409			$	43			$	84			$	536
Restructuring and integration expense			—				—				2,204				2,204
Cash paid			(296	)			—				(1,106	)			(1,402	)
Other			—				—				(590	)			(590	)
Foreign currency translation			—				3				—				3
Restructuring liability as of December 31, 2016		$	113			$	46			$	592			$	751
Restructuring and integration expense			—				—				215				215
Cash paid			(113	)			(46	)			(807	)			(966	)
Restructuring liability as of December 31, 2017		$	—			$	—			$	—			$	—