Quarterly report pursuant to Section 13 or 15(d)

Restructuring, Exit and Integration Activities

v3.8.0.1
Restructuring, Exit and Integration Activities
 9 Months Ended
Sep. 30, 2017
Restructuring and Related Activities [Abstract]  
Restructuring, Exit and Integration Activities [Text Block]
Restructuring, Exit and Integration Activities

In the third quarter of 2017, the Company recorded restructuring charges within the Fitness segment for the write-down of inventory and tooling related to the exit of the InMovement product line as a result of declining demand.

In the second and third quarters of 2017, the Company implemented headcount reductions in the Fitness and Boat segments aimed at improving general operating efficiencies. As a result of these actions, the Company recorded restructuring charges within these segments during 2017.

In the first quarter of 2017, the Company announced that it will close its boat manufacturing facility in Joinville, Santa Catarina, Brazil, as a result of continued market weakness due partially to unfavorable foreign currency impacts in the region. The facility manufactures certain Bayliner and Sea Ray boat models for the Latin American market. The long-lived assets at this facility were previously fully impaired.

In the first quarter of 2017, the Company also recorded restructuring charges within Corporate related to the transition of certain corporate officers.

The Company acquired Cybex International, Inc. (Cybex) and Indoor Cycling Group GmbH (ICG) in the first and third quarters of 2016, respectively, and initiated certain integration activities within the Fitness segment related to these acquisitions. As a result, the Company recorded integration charges in 2017 and 2016 related to Cybex and recorded integration charges in 2016 related to ICG.

The following table is a summary of the expense associated with the restructuring, exit and integration activities for the three months ended September 30, 2017 and October 1, 2016, as discussed above:
 
September 30, 2017
 
October 1, 2016
(in millions)
Fitness
 
Total
 
Fitness
 
Total
Restructuring and exit activities:
 
 
 
 
 
 
 
Employee termination and other benefits
$
1.6

 
$
1.6

 
$
—

 
$
—

Current asset write-downs
2.6

 
2.6

 
—

 
—

Other
0.4

 
0.4

 
—

 
—

Integration activities:
 
 
 
 
 
 
 
Employee termination and other benefits
0.4

 
0.4

 
0.6

 
0.6

Professional fees
1.6

 
1.6

 
1.6

 
1.6

Other
0.2

 
0.2

 
0.2

 
0.2

Total restructuring, exit and integration charges
$
6.8

 
$
6.8

 
$
2.4

 
$
2.4



The following table is a summary of the expense associated with the restructuring, exit and integration activities for the nine months ended September 30, 2017 and October 1, 2016, as discussed above:
 
September 30, 2017
 
October 1, 2016
(in millions)
Corporate
 
Fitness
 
Boat
 
Total
 
Fitness
 
Total
Restructuring and exit activities:
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
$
2.4

 
$
3.7

 
$
2.6

 
$
8.7

 
$
—

 
$
—

Current asset write-downs
—

 
2.6

 
7.2

 
9.8

 
—

 
—

Professional fees
—

 
—

 
0.8

 
0.8

 
—

 
—

Other
—

 
0.4

 
1.0

 
1.4

 
—

 
—

Integration activities:
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
—

 
2.4

 
—

 
2.4

 
2.7

 
2.7

Professional fees
—

 
4.2

 
—

 
4.2

 
3.8

 
3.8

Other
—

 
0.4

 
—

 
0.4

 
2.3

 
2.3

Total restructuring, exit and integration charges
$
2.4

 
$
13.7

 
$
11.6

 
$
27.7

 
$
8.8

 
$
8.8



During 2017, the Company made cash payments of $12.5 million relating to all restructuring, exit and integration activities, including payments related to prior period activities. As of September 30, 2017, accruals remaining for restructuring, exit and integration activities totaled $10.4 million and are expected to be paid during 2017 and 2018.