Quarterly report pursuant to Section 13 or 15(d)

Restructuring, Exit and Integration Activities

v3.19.1
Restructuring, Exit and Integration Activities
 3 Months Ended
Mar. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring, Exit and Integration Activities [Text Block]
Restructuring, Exit, Integration and Impairment Activities

As discussed in Note 9 – Goodwill and Other Intangibles, in the first quarter of 2019 the Company determined that the carrying value of its Fitness reporting unit was in excess of its fair value. As a result, the Company recorded a goodwill impairment charge of $137.2 million within the Fitness segment.

In the first quarter of 2019, the Company recorded restructuring charges within the Boat segment related to consolidating its commercial and government products operations in order to rationalize its product line to better align with customer demand.

In the first quarter of 2019, the Company recorded charges within Corporate for headcount reductions aimed at streamlining the cost structure.

In the first quarter of 2019 and 2018, the Company implemented headcount reductions in the Fitness segment aimed at improving general operating efficiencies.

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 30, 2019 and March 31, 2018, as discussed above:
 
March 30, 2019
 
March 31, 2018
(in millions)
Fitness
 
Boat
 
Corporate
 
Total
 
Fitness
 
Boat
 
Total
Restructuring and exit activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
$
1.1

 
$
0.4

 
$
1.2

 
$
2.7

 
$
0.8

 
$
2.0

 
$
2.8

Current asset write-downs (gains on disposal)
—

 
0.2

 
—

 
0.2

 
(0.4
)
 
—

 
(0.4
)
Professional fees
—

 
—

 
—

 
—

 
—

 
0.6

 
0.6

Other
—

 
0.1

 
—

 
0.1

 
—

 
—

 
—

Asset disposition and impairment actions:
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
137.2

 
—

 
—

 
137.2

 
—

 
—

 
—

Definite-lived and other asset impairments
—

 
1.3

 
—

 
1.3

 
—

 
—

 
—

Integration activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee termination and other benefits
—

 
—

 
—

 
—

 
0.0

 
—

 
0.0

Professional fees
—

 
—

 
—

 
—

 
0.7

 
—

 
0.7

Other
—

 
—

 
—

 
—

 
0.1

 
—

 
0.1

Total restructuring, exit, integration and impairment charges
$
138.3

 
$
2.0

 
$
1.2

 
$
141.5

 
$
1.2

 
$
2.6

 
$
3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total cash payments for restructuring, exit, integration and impairment charges (A)
$
0.7

 
$
5.0

 
$
0.2

 
$
5.9

 
$
2.0

 
$
0.2

 
$
2.5

Accrued charges at end of the period (B)
$
4.0

 
$
10.8

 
$
2.0

 
$
16.8

 
$
4.4

 
$
3.4

 
$
8.0



(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. The accrued charges as of March 30, 2019 are expected to be paid during 2019 and 2020.