XML 31 R19.htm IDEA: XBRL DOCUMENT

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

9 Months Ended

Sep. 30, 2024

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

NOTE 11. RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

Details of restructuring, asset impairments, and other charges are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Restructuring	$	27,790	$	4,709	$	27,844	$	8,906
Other charges		756		—		1,572		—
Total restructuring, asset impairments, and other charges	$	28,546	$	4,709	$	29,416	$	8,906

Restructuring

We have the following restructuring plans in process:

2024 Plan

On July 29, 2024, we approved actions in furtherance of our previously announced manufacturing consolidation initiatives intended to optimize our manufacturing footprint and cost structure, including the previously announced closure of our Zhongshan, China facility (the “2024 Plan”). In connection with the 2024 Plan, we recorded a $28.5 million charge during the third quarter of 2024 primarily associated with expected employment-related charges for, among other things, one-time cash payments for severance, benefits expenses, payroll taxes, and other ancillary costs. The charge includes estimated liabilities for lease termination and facility exit costs, which could be subject to further adjustments. The remaining contractual rental obligations under the lease agreements are recorded in current portion of operating lease liabilities and operating lease liabilities on our Consolidated Balance Sheets.

We expect to incur $1.0 million to $2.0 million in additional charges related to our announced actions and continue to evaluate our operations and cost structure, which could result in incremental restructuring charges in future periods. We anticipate the 2024 Plan will be substantially completed by the second quarter of 2025, with final activities concluding in 2026.

2023 Plan

In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect to incur approximately $1.0 million in additional charges through the second quarter of 2025. We anticipate the 2023 Plan will be substantially completed by the end of 2024, with the final activities concluding in the second quarter of 2025.

2022 Plan

This plan was approved to improve our operating efficiencies and drive the realization of synergies from our business combinations by consolidating our operations, optimizing our factory footprint, including moving certain production into our higher volume factories, reducing redundancies, and lowering our cost structure. The 2022 Plan is now complete.

Changes in restructuring liabilities were as follows:


	2024 Plan		2023 Plan		2022 Plan		Other		Total
December 31, 2023	$	—	$	14,224	$	2,930	$	188	$	17,342
Costs incurred and charged to expense		28,454		(698)		88		—		27,844
Costs paid		(855)		(7,653)		(3,018)		(188)		(11,714)
Foreign currency translation		457		—		—		—		457
September 30, 2024	$	28,056	$	5,873	$	—	$	—	$	33,929

$28.3 million of the above restructuring liability is included in other accrued expenses and $5.6 million is included in other long-term liabilities on our Consolidated Balance Sheets.

Charges related to our restructuring plans are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Severance and related charges	$	27,356	$	4,709	$	27,410	$	8,906
Facility relocation and closure charges		434		—		434		—
Total restructuring charges	$	27,790	$	4,709	$	27,844	$	8,906


	Cumulative Cost Through
	September 30, 2024
	2024 Plan		2023 Plan		2022 Plan		Total
Severance and related charges	$	28,020	$	16,405	$	14,075	$	58,500
Facility relocation and closure charges		434		—		—		434
Total restructuring charges	$	28,454	$	16,405	$	14,075	$	58,934

Other Charges

Other charges relate to vacating and relocating facilities.