Annual report pursuant to Section 13 and 15(d)

Restructuring, Impairments and Other Charges

Restructuring, Impairments and Other Charges
12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring, Impairments and Other Charges RESTRUCTURING, IMPAIRMENTS AND OTHER CHARGES
Antenna Business Impairment and Restructuring
In 2019, we performed quantitative assessments for the reporting units which had goodwill as of the first day of the fourth quarter, prior to the initiation of the antenna business restructuring activities. Based on our quantitative assessment, the Company recorded a full goodwill impairment charge of approximately $1.6 million in the December 31, 2019 Consolidated Statement of Operations associated with the AeroSat reporting unit.
In the fourth quarter of 2019, in an effort to reduce the significant operating losses at our AeroSat business, we initiated a restructuring plan to reduce costs and minimize losses of our AeroSat antenna business. The plan narrows the initiatives for the AeroSat business to focus primarily on near-term opportunities pertaining to business jet connectivity. The plan has a downsized manufacturing operation remaining in New Hampshire, with significantly reduced personnel and operating expenses.
As a result of the restructuring plan, the Company's total impairments and restructuring charges recorded in the fourth quarter of 2019 (including the goodwill impairment described above) amounted to $28.8 million, all of which is included in the Aerospace segment. Any future restructuring actions will depend upon market conditions, customer actions and other factors.
A summary of the restructuring, impairment and other charges, and their location on the Consolidated Statement of Operations, are presented as of December 31, 2019:
Restructuring Charges
(In thousands) Cost of Products Sold Selling, General and Administrative Impairment Loss Amounts
Accounts Receivable, Net $ —    $ 1,785    $ —    $ 1,785   
Inventories 9,429    —    —    9,429   
Prepaid Expenses and Other Current Assets 1,227    —    —    1,227   
Property, Plant and Equipment, Net —    —    2,268    2,268   
Other Assets —    122    1,019    1,141   
Intangible Assets, Net —    —    6,186    6,186   
Goodwill —    —    1,610    1,610   
Accrued Payroll and Employee Benefits —    449    —    449   
Other Accrued Expenses 164    —    —    164   
Other Liabilities 4,577    —    —    4,577   
$ 15,397    $ 2,356    $ 11,083    $ 28,836   
The charge to Prepaid Expenses and Other Current Assets is comprised of prepaid installation fees associated with programs that were either cancelled or are no longer being pursued as a result of the restructuring. The charge to Other Assets is comprised of the right-of-use asset values for the AeroSat facility lease. The charge to Accrued Payroll and Employee Benefits is comprised of employee termination benefits expected to be paid in 2020. The charge to Other Accrued Expenses and Other Liabilities represents the estimated current and non-current portions of payments to be made under non-cancelable inventory purchase commitments in the future for inventory which is not expected to be purchased prior to the expiration date of such agreements as a result of the restructuring plan. None of the restructuring or impairment charges resulted in the utilization of cash during 2019.
Financial Instrument Impairment
From time to time, the Company makes long-term, strategic equity investments in companies to promote business and strategic objectives. These investments are included in Other Assets on the Consolidated Balance Sheets. One of the investments incurred a full impairment charge which accounts for $5.0 million recorded within the Other Expense, Net of Other Income line in the accompanying Consolidated Statement of Operations for the year ended December 31, 2019.