XML 107 R12.htm IDEA: XBRL DOCUMENT
v3.20.1

Note 4 - Exit and Disposal Activities | 12 Months Ended
--- | ---
Dec. 31, 2019
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] |
( 4 ) | Exit and Disposal Activities
During 2016, the continued strength of the U.S. dollar, the tightening of margins in certain sectors of the commercial vehicle markets and the generally softening of certain key market segments led the Company to reevaluate the strategic importance of each of its customers to the Company’s long-term success. The Company has reduced its reliance on certain of its traditional Tier 1 customers that represent the primary suppliers to the original equipment manufacturers (“OEMs”) in the commercial vehicle markets, while targeting to replace these customers with more diversified, longer-term relationships, especially among the OEMs, Tier 1 suppliers and others who place a higher value on the Company’s innovation, flexibility and core commitment to lean manufacturing principles. Among the customer programs not being renewed were (i) a supply agreement with Meritor that expired on January 1, 2017 and (ii) the Company’s business with Eaton, both of which utilized production at the Company’s Broadway Plant. On February 21, 2017, the Board of Directors approved a modified exit or disposal plan with respect to the Broadway Plant, which included the relocation of production to other Company facilities, as needed, and/or the closure of the plant. The relocation of production was complete as of the end of 2017. The Company has relocated certain assets from the Broadway Plant to other manufacturing facilities, as needed, to serve its existing and target customer base and identified underutilized or non-core assets, including the Broadway Plant real estate, for disposal. As a result of these initiatives, the Company recorded charges of $509,000, or $0.02 per share, and $1,394,000, or $0.07 per share, during 2019 and 2018, respectively, related to the transition of production from the Broadway Plant, which is included in severance, relocation and other costs in the consolidated statement of operations. All amounts incurred were recorded within Sypris Technologies. The charges for 2019 were primarily related to mothball costs associated with the closed facility. The charges for 2018 included $361,000 for equipment relocation costs and $1,033,000 primarily related to mothball costs associated with the closed facility. A summary of the total pre-tax charges is as follows (in thousands):
|  |  |  |  |  | Costs Incurred |  |  |  |  |
|  |  |  |  |  | Year |  |  | Total |  |  | Remaining |
|  | Total |  |  | Ended |  |  | Recognized |  |  | Costs to be |
|  | Program |  |  | Dec. 31, 2019 |  |  | to date |  |  | Recognized |
Severance and benefit related costs |  | $ | 1,350 |  |  | $ | 0 |  |  | $ | 1,350 |  |  | $ | 0 |
Asset impairments |  |  | 188 |  |  |  | 0 |  |  |  | 188 |  |  |  | 0 |
Equipment relocation costs |  |  | 1,826 |  |  |  | 38 |  |  |  | 1,826 |  |  |  | 0 |
Other |  |  | 1,609 |  |  |  | 471 |  |  |  | 1,546 |  |  |  | 63 |
|  | $ | 4,973 |  |  | $ | 509 |  |  | $ | 4,910 |  |  | $ | 63 |
The Company expects to incur additional pre-tax costs of approximately $63,000 within Sypris Technologies, all of which is expected to be cash expenditures. As noted above, management expects to apply proceeds from the sale of underutilized or non-core assets to help fund the costs to transfer additional equipment from the Broadway Plant and the transition of the related production. The following assets have been segregated and included in assets held for sale in the consolidated balance sheets (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Property, plant and equipment |  | $ | 13,346 |  |  | $ | 11,207 |
Accumulated depreciation |  | $ | (11,113 | ) |  | $ | (9,733 | )
Property, plant and equipment, net |  | $ | 2,233 |  |  | $ | 1,474 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration