Quarterly report pursuant to Section 13 or 15(d)

Restructuring, Exit and Integration Activities

v3.8.0.1
Restructuring, Exit and Integration Activities
 3 Months Ended
Mar. 31, 2018
Restructuring and Related Activities [Abstract]  
Restructuring, Exit and Integration Activities [Text Block]
Restructuring, Exit, Integration and Impairment Activities

In the first quarter of 2018, the Company implemented further headcount reductions in the Fitness segment aimed at improving general operating efficiencies.

In the first quarter of 2018 and 2017, the Company executed certain integration activities within the Fitness segment related to its acquisition of Cybex International, Inc.

In the first quarter of 2017, the Company announced the closure of 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. As a result, the Company recorded restructuring, exit, integration and impairment charges, including the write-down of inventory. The facility manufactured 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 recorded restructuring, exit, integration and impairment charges within Corporate related to the transition of certain corporate officers.

The Company recorded restructuring, exit, integration and impairment charges in the Condensed Consolidated Statements of Comprehensive Income as a result of the activities described above. The following table is a summary of the expense associated with the restructuring, exit, integration and impairment activities for the three months ended March 31, 2018 and April 1, 2017, as discussed above:
 
March 31, 2018
 
April 1, 2017
(in millions)
Fitness
 
Total
 
Corporate
 
Fitness
 
Boat
 
Total
Restructuring and exit activities:
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
$
0.8

 
$
0.8

 
$
2.4

 
$
—

 
$
1.1

 
$
3.5

Current asset write-downs (gains on disposal)
(0.4
)
 
(0.4
)
 
—

 
—

 
2.2

 
2.2

Professional fees
—

 
—

 
—

 
—

 
0.2

 
0.2

Integration activities:
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
0.0

 
0.0

 
—

 
1.1

 
—

 
1.1

Professional fees
0.7

 
0.7

 
—

 
1.2

 
—

 
1.2

Other
0.1

 
0.1

 
—

 
0.1

 
—

 
0.1

Total restructuring, exit, integration and impairment charges
$
1.2

 
$
1.2

 
$
2.4

 
$
2.4

 
$
3.5

 
$
8.3

 
 
 
 
 
 
 
 
 
 
 
 
Total cash payments for restructuring, exit, integration and impairment charges (A)
$
2.0

 
$
2.3

 
$
0.6

 
$
3.5

 
$
0.6

 
$
4.7

Accrued charges at end of the period (B)
$
4.4

 
$
4.6

 
$
1.1

 
$
2.8

 
$
1.2

 
$
5.1



(A) Total cash payments for the three months ended March 31, 2018 also include $0.3 million of payments for Corporate restructuring, exit, integration and impairment charges. Cash payments may include payments related to prior period charges.
(B) Restructuring, exit, integration and impairment charges accrued as of March 31, 2018 also include $0.2 million of Corporate charges. All of the accrued charges are expected to be paid during 2018.