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Note N - Restructuring Activities | 9 Months Ended
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Sep. 30, 2021
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | Note N — Restructuring Activities Our management team continuously reviews and adjusts our cost structure and operating footprint, optimize our operations, and invest in improved technology. During 2020, in an effort to right-size our operating footprint, we terminated leases in Wilkes Barre (PA) and Grand Prairie (TX) and exited our last direct mail facility in Jacksonville (FL). We completed the migration of our fulfillment business from the Grand Prairie operations into a new 300,000 square foot facility in Kansas City in December 2020. In the first quarter of 2021, we completed the migration of our Shawnee operations to Kansas City. The Shawnee facility lease expired on April 30, 2021. The new Kansas City location is now our primary facility in the Midwest. In 2020, we successfully reduced the footprint of our Customer Care business by reducing our Austin office location by approximately 50,000 square feet in addition to exiting one of our two Manila offices since the business is operating effectively in a work-from-home environment. In the three months ended September 30, 2021 and 2020 we recorded restructuring charges of $0.9 million and $1.4 million respectively. The charges for the three months ended September 30, 2021 included $0.1 million of severance charges, $0.4 million in lease impairment expense and $0.4 million of facility related and other expenses. The charges for the three months ended September 30, 2020 included $0.6 million of severance charges, $0.6 million of facility related and other expenses, and $0.2 million in capital losses from the asset disposal associated with the Summit deal. In the nine months ended September 30, 2021 and 2020 we recorded restructuring charges of $4.9 million and $8.0 million respectively. The charges for the nine months ended September 30, 2021 included $1.5 million of severance charges, $0.7 million in lease impairment expense and $2.6 million of facility related and other expenses. The charges for the nine months ended September 30, 2020 included $3.0 million of lease impairment charges related to the exit from our direct mail facilities, $2.0 million of severance charges, $1.3 million in capital losses from the asset disposal associated with the sale of assets to Summit and $2.0 million of facility related and other expenses. The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statements of Comprehensive Income (Loss).
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
In thousands |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Adjustment to Contract termination fee |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (306 | )
Severance |  | $ | 116 |  |  | $ | 641 |  |  | $ | 1,530 |  |  | $ | 2,053 |
Facility, asset impairment and other expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lease impairment and termination expense |  |  | 425 |  |  |  | — |  |  |  | 718 |  |  |  | 2,974 |
Fixed Asset disposal and impairment charges |  |  | (8 | ) |  |  | 154 |  |  |  | (2 | ) |  |  | 1,294 |
Facility and other expenses |  |  | 404 |  |  |  | 624 |  |  |  | 2,634 |  |  |  | 1,990 |
Total facility, asset impairment and other expense |  |  | 821 |  |  |  | 778 |  |  |  | 3,350 |  |  |  | 6,258 |
Total |  | $ | 937 |  |  | $ | 1,419 |  |  | $ | 4,880 |  |  | $ | 8,005 |
The following table summarizes the changes in liabilities related to restructuring activities:
In thousands |  | Three Months Ended September 30, 2021 |
|  | Contract Termination Fee |  |  | Severance |  |  | Facility, asset impairment and other expense |  |  | Total |
Beginning Balance: |  | $ | — |  |  | $ | 937 |  |  | $ | 21 |  |  | $ | 958 |
Additions |  |  | — |  |  |  | 113 |  |  |  | (16 | ) |  |  | 97 |
Payments and adjustments |  |  | — |  |  |  | (421 | ) |  |  | — |  |  |  | (421 | )
Ending Balance: |  | $ | — |  |  | $ | 629 |  |  | $ | 5 |  |  | $ | 634 |
In thousands |  | Nine Months Ended September 30, 2021 |
|  | Contract Termination Fee |  |  | Severance |  |  | Facility, asset impairment and other expense |  |  | Total |
Beginning balance: |  | $ | — |  |  | $ | 549 |  |  | $ | 4 |  |  | $ | 553 |
Additions |  |  | — |  |  |  | 1,527 |  |  |  | 1 |  |  |  | 1,528 |
Payments and adjustments |  |  | — |  |  |  | (1,447 | ) |  |  | — |  |  |  | (1,447 | )
Ending balance: |  | $ | — |  |  | $ | 629 |  |  | $ | 5 |  |  | $ | 634 |
In thousands |  | Three Months Ended September 30, 2020 |
|  | Contract Termination Fee |  |  | Severance |  |  | Facility, asset impairment and other expense |  |  | Total |
Beginning Balance: |  | $ | 695 |  |  | $ | 775 |  |  | $ | 2 |  |  | $ | 1,472 |
Additions |  |  | — |  |  |  | 611 |  |  |  | 576 |  |  |  | 1,187 |
Payments |  |  | (695 | ) |  |  | (608 | ) |  |  | (570 | ) |  |  | (1,873 | )
Ending Balance: |  | $ | — |  |  | $ | 778 |  |  | $ | 8 |  |  | $ | 786 |
|  | For the Nine Months Ended September 30, 2020 |
|  | Contract Termination Fee |  |  | Severance |  |  | Facility, asset impairment and other expense |  |  | Total |
Beginning Balance: |  | $ | 1,491 |  |  | $ | 360 |  |  | $ | 70 |  |  | $ | 1,921 |
Additions |  |  | — |  |  |  | 2,022 |  |  |  | 3,145 |  |  |  | 5,167 |
Payments |  |  | (1,491 | ) |  |  | (1,604 | ) |  |  | (3,207 | ) |  |  | (6,302 | )
Ending Balance: |  | $ | — |  |  | $ | 778 |  |  | $ | 8 |  |  | $ | 786 |
We expect that in connection with our cost-saving and restructuring initiatives, we will incur total restructuring charges of approximately $27.1 million through the end of 2021. We have recognized $26.1 million of restructuring charges to date, and we expect to incur an additional $1.0 million of restructuring charges through the end of 2021.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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