XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.21.2

Supplemental Financial Information | 6 Months Ended
--- | ---
Jun. 30, 2021
Supplemental Income Statement Elements [Abstract] |
Supplemental Financial Information | Supplemental Financial Information Restructuring and Impairment Charges The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:
| Three Months Ended |  | Six Months Ended
(Dollars in thousands) | June 30, 2021 |  | June 30, 2020 |  | June 30, 2021 |  | June 30, 2020
Restructuring charges |  |  |  |  |  |  |
Manufacturing footprint optimization | 747 |  |  | — |  |  | 2,253 |  |  | — |
Total restructuring charges | 747 |  |  | — |  |  | 2,253 |  |  | — |
Total restructuring and impairment charges | $ | 747 |  |  | $ | — |  |  | $ | 2,253 |  |  | $ | — |
Our AES operating segment incurred $0.7 million and $2.3 million of restructuring and impairment charges for the three and six months ended June 30, 2021, respectively, and our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and six months ended June 30, 2021. Restructuring Charges & Related Expenses - Manufacturing Footprint Optimization During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our AES operating segment, in order to achieve greater cost competitiveness as well as align capacity with end market demand. The majority of the restructuring activities have been completed as of the end of the first half of 2021. We incurred restructuring charges and related expenses of $0.7 million and $2.3 million for the three and six months ended June 30, 2021, respectively, of which $0.4 million of contra-expense and $0.1 million of expense is related to severance and related benefits for the three and six months ended June 30, 2021, respectively. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the six months ended June 30, 2021:
(Dollars in thousands) | Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2020 | $ | 11,003 |
Provisions | 113 |
Payments | (6,902) |
Foreign currency translation adjustment | (312) |
Balance as of June 30, 2021 | $ | 3,902 |
Other Operating (Income) Expense, Net The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:
| Three Months Ended |  | Six Months Ended
(Dollars in thousands) | June 30, 2021 |  | June 30, 2020 |  | June 30, 2021 |  | June 30, 2020
UTIS fire |  |  |  |  |  |  |
Fixed assets write-offs | — |  |  | — |  |  | 891 |  |  | — |
Inventory charges | 40 |  |  | — |  |  | 320 |  |  | — |
Professional services | 1,072 |  |  | — |  |  | 1,594 |  |  | — |
Lease obligations | 54 |  |  | — |  |  | 540 |  |  | — |
Compensation & benefits | 600 |  |  | — |  |  | 844 |  |  | — |
Other | 76 |  |  | — |  |  | 76 |  |  | — |
Insurance recoveries | (359) |  |  | — |  |  | (1,478) |  |  | — |
Total UTIS fire | 1,483 |  |  | — |  |  | 2,787 |  |  | — |
(Gain) loss on sale or disposal of property, plant and equipment | (593) |  |  | 33 |  |  | (682) |  |  | 53 |
Economic incentive grants | — |  |  | (145) |  |  | — |  |  | (145) |
Total other operating (income) expense, net | $ | 890 |  |  | $ | (112) |  |  | $ | 2,105 |  |  | $ | (92) |
In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. The cause of the fire is still under investigation. Operations at this facility will be disrupted into at least the first quarter of 2022. We are currently evaluating alternative facility options. We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.3 million, respectively, related to property destroyed in the fire for the six months ended June 30, 2021. Additionally, we recognized a $0.5 million contingent liability pertaining to our obligations for the fire damage to the building in connection with the underlying lease agreement. We have incurred $1.1 million and $1.6 million of fees for various professional services for the three and six months ended June 30, 2021, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $0.8 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three and six months ended June 30, 2021, respectively. In connection with the UTIS fire, we have recognized anticipated insurance recoveries of $0.4 million and $1.5 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible, for the three and six months ended June 30, 2021, respectively. Based on the facts and circumstances known to us as of our filing, while we are aware of other potential liabilities, we are unable presently to estimate the probability or amount of any further contingent liabilities associated with damages to nearby property or other potential costs due to the fire at our UTIS manufacturing facility. As such, no further reserves have been established at this time. We will continue to re-assess as additional information becomes available. Interest Expense, Net The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:
| Three Months Ended |  | Six Months Ended
(Dollars in thousands) | June 30, 2021 |  | June 30, 2020 |  | June 30, 2021 |  | June 30, 2020
Interest on revolving credit facility | $ | 5 |  |  | $ | 1,388 |  |  | $ | 106 |  |  | $ | 2,467 |
Interest rate swap settlements | — |  |  | 336 |  |  | — |  |  | 422 |
Line of credit fees | 291 |  |  | 152 |  |  | 564 |  |  | 318 |
Debt issuance amortization costs | 179 |  |  | 138 |  |  | 358 |  |  | 276 |
Interest on finance leases | 47 |  |  | 32 |  |  | 259 |  |  | 65 |
Interest income | (150) |  |  | (269) |  |  | (345) |  |  | (589) |
Other | 32 |  |  | 2 |  |  | 69 |  |  | 27 |
Total interest expense, net | $ | 404 |  |  | $ | 1,779 |  |  | $ | 1,011 |  |  | $ | 2,986 |

X
- Definition The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement. + References No definition available. + Details
Name: | us-gaap_AdditionalFinancialInformationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SupplementalIncomeStatementElementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration