Schedule of Restructuring and Related Costs | During 2016, we initiated certain restructuring activities, under which we continued to simplify our business ("2016 Actions"). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities. Charges with this action were finalized in 2017. 2016 Actions Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Total Facility related expenses - incurred to date $ 708 $ 94 $ 802 Employee related expenses - incurred to date 2,476 1,181 3,657 Total restructuring related special charges - incurred to date $ 3,184 $ 1,275 $ 4,459 In July 2015, we announced the closure of one of the two Corona, California manufacturing facilities ("California Restructuring"). Under this restructuring, we are reducing certain general, manufacturing and facility related expenses. Charges with this action were finalized in the fourth quarter of 2016. California Restructuring Charges, net as of December 31, 2017 Advanced Flow Solutions Facility related expenses - incurred to date $ 3,700 Employee related expenses - incurred to date 800 Total restructuring related special charges - incurred to date $ 4,500 The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges, net line item on the consolidated statements of income for the periods ending December 31, 2017, 2016, and 2015: Special & Restructuring Charges, net For the year ended December 31, 2017 2016 2015 Special charges, net $ 7,989 $ 8,196 $ 9,720 Restructuring charges, net 6,063 8,975 4,634 Total special and restructuring charges, net $ 14,051 $ 17,171 $ 14,354 The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2016: Special Charges, net For the year ended December 31, 2016 Energy Advanced Flow Solutions Corporate Total Acquisition related charges — (161 ) 978 817 Brazil closure 2,920 — 2 2,922 Pension settlement — — 4,457 4,457 Total special charges, net $ 2,920 $ (161 ) $ 5,437 $ 8,196 The following table (in thousands) summarizes the total program costs for the 2015 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the fourth quarter of 2015. 2015 Announced Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses - incurred to date $ (382 ) $ 257 $ — $ (125 ) Employee related expenses - incurred to date 3,425 740 — 4,165 Total restructuring related charges - incurred to date $ 3,043 $ 997 $ — $ 4,040 The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the year ending December 31, 2017, 2016, and 2015. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below. Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ 2,523 $ 443 $ — $ 2,966 Employee related expenses 1,035 2,062 — 3,097 Total restructuring charges, net $ 3,558 $ 2,505 $ — $ 6,063 Accrued restructuring charges as of December 31, 2016 $ 1,618 Total year to date charges, net (shown above) 6,063 Charges paid / settled, net (6,095 ) Accrued restructuring charges as of December 31, 2017 $ 1,586 We expect to make payment or settle the majority of the restructuring charges accrued as of December 31, 2017 during the first first half of 2018. Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2016 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ 792 $ 3,701 $ — $ 4,493 Employee related expenses 2,393 2,089 — 4,482 Total restructuring charges, net $ 3,185 $ 5,790 $ — $ 8,975 Accrued restructuring charges as of December 31, 2015 $ 663 Total year to date charges, net (shown above) 8,975 Charges paid / settled, net (8,020 ) Accrued restructuring charges as of December 31, 2016 1,618 $ 1,618 Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2015 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ (376 ) $ 257 $ — $ (119 ) Employee related expenses 3,279 1,474 — 4,753 Total restructuring charges, net $ 2,903 $ 1,731 $ — $ 4,634 Accrued restructuring charges as of December 31, 2014 $ 1,645 Total year to date charges, net (shown above) 4,634 Charges paid / settled, net (5,616 ) Accrued restructuring charges as of December 31, 2015 $ 663 The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2017: Special Charges, net For the year ended December 31, 2017 Energy Advanced Flow Solutions Corporate Total Acquisition-related charges $ 54 $ 12 $ 12,995 $ 13,061 Brazil closure 879 — — 879 Divestitures — 3,748 101 3,849 Contingent consideration revaluation (12,200 ) — (12,200 ) California Legal Settlement — 2,400 — 2,400 Total special charges, net $ (11,267 ) $ 6,160 $ 13,096 $ 7,989 The following table (in thousands) summarizes the total program costs for the 2014 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2014 Announced Restructuring action. 2014 Announced Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses - incurred to date $ (64 ) $ 95 $ — $ 31 Employee related expenses - incurred to date 1,463 2,956 317 4,736 Total restructuring related charges - incurred to date $ 1,399 $ 3,051 $ 317 $ 4,767 The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2015: Special Charges, net For the year ended December 31, 2015 Energy Advanced Flow Solutions Corporate Total Divestitures (2 ) (1,042 ) — (1,044 ) Acquisition related charges — 919 — 919 Brazil closure 8,650 — 775 9,425 Executive retirement charges — — 420 420 Total special charges, net $ 8,648 $ (123 ) $ 1,195 $ 9,720 | Special and Restructuring charges, net Special and Restructuring Charges, net Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges, net on our consolidated statements of income. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item. The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges, net line item on the consolidated statements of income for the periods ending December 31, 2017, 2016, and 2015: Special & Restructuring Charges, net For the year ended December 31, 2017 2016 2015 Special charges, net $ 7,989 $ 8,196 $ 9,720 Restructuring charges, net 6,063 8,975 4,634 Total special and restructuring charges, net $ 14,051 $ 17,171 $ 14,354 Special Charges, net The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2017: Special Charges, net For the year ended December 31, 2017 Energy Advanced Flow Solutions Corporate Total Acquisition-related charges $ 54 $ 12 $ 12,995 $ 13,061 Brazil closure 879 — — 879 Divestitures — 3,748 101 3,849 Contingent consideration revaluation (12,200 ) — (12,200 ) California Legal Settlement — 2,400 — 2,400 Total special charges, net $ (11,267 ) $ 6,160 $ 13,096 $ 7,989 Acquisition related charges: • On December 11, 2017, we acquired FH. In connection with our acquisition, we recorded $13.0 million of acquisition related professional fees and debt extinguishment fees during the twelve months ended December 31, 2017. • On October 12, 2016, we acquired CFS. In connection with our acquisition, we recorded $0.1 million of acquisition related professional fees during the twelve months ended December 31, 2017. Brazil Closure: On November 3, 2015, our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras. CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market conditions and outlook deteriorated. In connection with the closure, we recorded $0.9 million of charges within the Energy segment during the year ended December 31, 2017, which relates to losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016. Divestiture: On July 7, 2017, we divested our French non-core aerospace build-to-print business within our Advanced Flow Solutions segment as part of our simplification strategy. We considered this business as non-core because the products or services did not fit our strategy and the long-term profitable growth prospects were below our expectations. Divestiture of this non-core business enables us to focus resources on businesses where there is greater opportunity to achieve sales growth, higher margins, and market leadership. We measured the disposal group at its fair value less cost to sell, which was lower than its carrying value, and recorded a $3.8 million charge during the second quarter of 2017. Also, in connection with this disposition we recorded a $1.5 million of severance included as a restructuring charge. Contingent Consideration Revaluation: The fair value of the earn-out decreased $12.2 million during the twelve months ended December 31, 2017. The change in fair value during the year ended December 31, 2017 was recorded as a recovery within the special and restructuring charges (recoveries) line on our condensed consolidated statement of income. The actual achievement of the earn-out was zero and the earn-out period expired on September 30, 2017. California Legal Settlement: We recorded a special charge of $2.4 million during the fourth quarter of 2017 related to settlement of a wage and hour claim in our California Aerospace business. The claim was settled on February 21, 2018. Refer to Note 14, " Contingencies, Commitments and Guarantees" for additional disclosure. The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2016: Special Charges, net For the year ended December 31, 2016 Energy Advanced Flow Solutions Corporate Total Acquisition related charges — (161 ) 978 817 Brazil closure 2,920 — 2 2,922 Pension settlement — — 4,457 4,457 Total special charges, net $ 2,920 $ (161 ) $ 5,437 $ 8,196 Acquisition related charges (recoveries) are described below: • On October 12, 2016, we acquired CFS. In connection with our acquisition, we recorded $1.0 million of acquisition related professional fees for the year ended December 31, 2016. • On April 15, 2015, we acquired Germany-based Schroedahl. In connection with our acquisition of Schroedahl, we recorded a $0.2 million acquisition related professional fees adjusted for the year ended December 31, 2016. Brazil Closure: On November 3, 2015 our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras. CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market conditions and outlook deteriorated. In connection with the closure, we recorded $2.9 million of charges within the Energy segment during the twelve months ended December 31, 2016, which primarily related to employee termination costs and losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016. Pension Settlement: During the third quarter of 2016, management offered a lump sum cash payout option to terminated and vested pension plan participants. In connection with this action, the window for participants who opt to avail themselves of this program closed in the fourth quarter of 2016. During the fourth quarter of 2016, we incurred a settlement charge of $4.5 million recorded within the special and restructuring charges, net line item. Refer to Note 13, Retirement Plans, for additional disclosure. The table below (in thousands) outlines the special charges, net recorded for the year ending December 31, 2015: Special Charges, net For the year ended December 31, 2015 Energy Advanced Flow Solutions Corporate Total Divestitures (2 ) (1,042 ) — (1,044 ) Acquisition related charges — 919 — 919 Brazil closure 8,650 — 775 9,425 Executive retirement charges — — 420 420 Total special charges, net $ 8,648 $ (123 ) $ 1,195 $ 9,720 Divestiture recoveries: On January 6, 2015, we announced the divestiture of two of our non-core businesses as part of our simplification strategy. The Energy divestiture was substantially completed in the fourth quarter of 2014 with the related charge recorded in 2014. During the first quarter of 2015, the Advanced Flow Solutions divestiture was substantially completed and we recorded a gain of $1.0 million . Acquisition related charges: In connection with our acquisition of Schroedahl, we recorded $0.9 million of acquisition related professional fees for the year ended December 31, 2015. Brazil closure: In connection with the closure, we recorded $8.7 million in charges within our Energy segment during the year ended December 31, 2015. These charges related to: the realizability of the value added tax recoverable for $4.4 million as our exit would stop future sales which would be needed to recover these taxes paid, supplier cancellation penalties of $1.6 million as we had fixed purchase commitments which would be canceled, customer cancellation penalties of $1.1 million , litigation claims of $0.5 million that we deemed probable for risk of loss, professional fees of $0.3 million , and other charges of $0.8 million . In addition, during the fourth quarter of 2015, we recorded $0.8 million of professional fees associated with the Brazil matter at Corporate. As of December 31, 2015, our remaining Brazil assets were $7.1 million of which $4.2 million relates to inventory, $1.0 million to accounts receivable, and $1.0 million to cash. Executive Retirement Charges: During the first quarter of 2015, we recorded charges of $0.4 million associated with the retirement of our Energy President. These charges primarily related to equity award modifications. Restructuring Charges, net The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the year ending December 31, 2017, 2016, and 2015. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below. Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ 2,523 $ 443 $ — $ 2,966 Employee related expenses 1,035 2,062 — 3,097 Total restructuring charges, net $ 3,558 $ 2,505 $ — $ 6,063 Accrued restructuring charges as of December 31, 2016 $ 1,618 Total year to date charges, net (shown above) 6,063 Charges paid / settled, net (6,095 ) Accrued restructuring charges as of December 31, 2017 $ 1,586 We expect to make payment or settle the majority of the restructuring charges accrued as of December 31, 2017 during the first first half of 2018. Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2016 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ 792 $ 3,701 $ — $ 4,493 Employee related expenses 2,393 2,089 — 4,482 Total restructuring charges, net $ 3,185 $ 5,790 $ — $ 8,975 Accrued restructuring charges as of December 31, 2015 $ 663 Total year to date charges, net (shown above) 8,975 Charges paid / settled, net (8,020 ) Accrued restructuring charges as of December 31, 2016 1,618 $ 1,618 Restructuring Charges / (Recoveries) As of and for the year ended December 31, 2015 Energy Advanced Flow Solutions Corporate Total Facility related expenses $ (376 ) $ 257 $ — $ (119 ) Employee related expenses 3,279 1,474 — 4,753 Total restructuring charges, net $ 2,903 $ 1,731 $ — $ 4,634 Accrued restructuring charges as of December 31, 2014 $ 1,645 Total year to date charges, net (shown above) 4,634 Charges paid / settled, net (5,616 ) Accrued restructuring charges as of December 31, 2015 $ 663 Restructuring Programs Summary As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, total cost associated with 2017 Actions (as discussed below) will be recorded in 2017 and 2018. The amounts shown below reflect the total cost for that restructuring program. During 2017, we initiated certain restructuring activities, under which we continued to simplify our business ("2017 Actions"). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities. Charges with this action were finalized in 2017. 2017 Actions Restructuring Charges (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Total Facility related expenses - incurred to date $ — $ 366 $ 366 Employee related expenses - incurred to date 598 1,892 2,490 Total restructuring related special charges - incurred to date $ 598 $ 2,258 $ 2,856 During 2016, we initiated certain restructuring activities, under which we continued to simplify our business ("2016 Actions"). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities. Charges with this action were finalized in 2017. 2016 Actions Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Total Facility related expenses - incurred to date $ 708 $ 94 $ 802 Employee related expenses - incurred to date 2,476 1,181 3,657 Total restructuring related special charges - incurred to date $ 3,184 $ 1,275 $ 4,459 In July 2015, we announced the closure of one of the two Corona, California manufacturing facilities ("California Restructuring"). Under this restructuring, we are reducing certain general, manufacturing and facility related expenses. Charges with this action were finalized in the fourth quarter of 2016. California Restructuring Charges, net as of December 31, 2017 Advanced Flow Solutions Facility related expenses - incurred to date $ 3,700 Employee related expenses - incurred to date 800 Total restructuring related special charges - incurred to date $ 4,500 On February 18, 2015, we announced a restructuring action ("2015 Announced Restructuring"), under which we continued to simplify our businesses. Under this action, we reduced certain general, administrative and manufacturing related expenses primarily personnel related. The following table (in thousands) summarizes the total program costs for the 2015 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the fourth quarter of 2015. 2015 Announced Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses - incurred to date $ (382 ) $ 257 $ — $ (125 ) Employee related expenses - incurred to date 3,425 740 — 4,165 Total restructuring related charges - incurred to date $ 3,043 $ 997 $ — $ 4,040 On April 22, 2014, we announced additional restructuring actions ("2014 Announced Restructuring"), under which we continued to simplify our businesses. Under this action, we reduced certain general and administrative expenses, including the reduction of certain management layers, and closing a number of smaller facilities. The following table (in thousands) summarizes the total program costs for the 2014 Announced Restructuring as of December 31, 2016. Charges with this action were finalized in the second quarter of 2015. We do not anticipate any additional restructuring related charges associated with the 2014 Announced Restructuring action. 2014 Announced Restructuring Charges / (Recoveries), net as of December 31, 2017 Energy Advanced Flow Solutions Corporate Total Facility related expenses - incurred to date $ (64 ) $ 95 $ — $ 31 Employee related expenses - incurred to date 1,463 2,956 317 4,736 Total restructuring related charges - incurred to date $ 1,399 $ 3,051 $ 317 $ 4,767 Additional Restructuring Charges In conjunction with the restructuring actions noted above, we incur certain costs, primarily related to inventory, that are recorded in cost of revenues instead of special and restructuring charges. Such restructuring-related amounts totaled $0.0 million , $2.8 million , and $9.4 million for the years ending December 31, 2017, 2016 and 2015, respectively, and are described further below. During the first and fourth quarters of 2016, in connection with the restructuring of certain structural landing gear product lines, we recorded inventory related charges of less than $0.1 million , and $0.8 million respectively, within the Advanced Flow Solutions segment. During the first and second quarters of 2016, we recorded restructuring related inventory $1.9 million and $0.1 million respectively, associated with the closure of manufacturing operations and the exit of the gate, globe and check valves product line in Brazil. As of December 31, 2017, no inventory amounts remain on our balance sheet for the gate, globe, and check valves product line. During the third and fourth quarters of 2015, we recorded restructuring related inventory charges of $6.4 million and $0.5 million , respectively, associated with the closure of manufacturing operations and the exit of the gate, globe and check valves product line in Brazil. $0.2 million associated with the exit of our Energy segment cable protection product line. During the second and fourth quarters of 2015, in connection with the restructuring of certain structural landing gear product lines, we recorded inventory related charges of $1.9 million , and $0.4 million , respectively, within the Advanced Flow Solutions segment. |