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Supplemental Financial Information | 12 Months Ended
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Dec. 31, 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, were as follows:
| Years Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Restructuring charges |  |  |  |  |
Manufacturing footprint optimization | $ | 3,115 |  |  | $ | 12,348 |  |  | $ | — |
Facility consolidation | — |  |  | — |  |  | 948 |
Restructuring charges | 3,115 |  |  | 12,348 |  |  | 948 |
Impairment charges |  |  |  |  |
Fixed assets impairment charges | 455 |  |  | 587 |  |  | 1,537 |
Other impairment charges | — |  |  | 52 |  |  | — |
Impairment charges | 455 |  |  | 639 |  |  | 1,537 |
Total restructuring and impairment charges | $ | 3,570 |  |  | $ | 12,987 |  |  | $ | 2,485 |
Restructuring Charges - 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 were completed in the first half of 2021. We incurred restructuring charges and related expenses of $3.1 million and $12.3 million in 2021 and 2020. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the year ended December 31, 2021:
(Dollars in thousands) | Manufacturing Footprint Optimization Restructuring Severance and Related Benefits
Balance as of December 31, 2020 | $ | 11,003 |
Provisions | 182 |
Payments | (9,175) |
Foreign currency translation adjustment | (615) |
Balance as of December 31, 2021 | $ | 1,395 |
Impairment Charges We recognized $0.5 million and $0.6 million of impairment charges in 2021 and 2020, respectively, primarily related to AES operating segment fixed assets in Belgium. We recognized $1.5 million of impairment charges in 2019 pertaining to our AES operating segment, primarily on certain assets in connection with the Isola USA Corp. (Isola) asset acquisition. Allocation of Restructuring and Impairment Charges to Operating Segments The following table summarizes the allocation of restructuring and impairment charges to our operating segments:
| Years Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Advanced Electronics Solutions |  |  |  |  |
Allocated restructuring charges | $ | 3,029 |  |  | $ | 11,947 |  |  | $ | — |
Allocated impairment charges | 455 |  |  | 587 |  |  | 1,537 |
Elastomeric Material Solutions |  |  |  |  |
Allocated restructuring charges | 86 |  |  | 401 |  |  | 948 |
Allocated impairment charges | — |  |  | 52 |  |  | — |
Total restructuring and impairment charges | $ | 3,570 |  |  | $ | 12,987 |  |  | $ | 2,485 |
Other Operating (Income) Expense, Net The components of “Other operating (income) expense, net” were as follows:
| Years Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
UTIS fire |  |  |  |  |
Fixed assets write-offs | $ | 1,073 |  |  | $ | — |  |  | $ | — |
Inventory charges | 874 |  |  | — |  |  | — |
Professional services | 2,771 |  |  | — |  |  | — |
Lease obligations | 994 |  |  | — |  |  | — |
Lease impairments | 495 |  |  | — |  |  | — |
Compensation & benefits | 2,072 |  |  | — |  |  | — |
Third-party property claims | 4,650 |  |  | — |  |  | — |
Other | 155 |  |  | — |  |  | — |
Insurance recoveries | (6,874) |  |  | — |  |  | — |
Total UTIS fire | 6,210 |  |  | — |  |  | — |
Lease income | — |  |  | — |  |  | (989) |
Depreciation on leased assets | — |  |  | — |  |  | 1,907 |
Loss (gain) on sale or disposal of property, plant and equipment | (880) |  |  | 41 |  |  | 756 |
Indemnity claim settlements from acquisitions | — |  |  | — |  |  | (715) |
Economic incentive grants | — |  |  | (145) |  |  | — |
Total other operating (income) expense, net | $ | 5,330 |  |  | $ | (104) |  |  | $ | 959 |
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. Operations in South Korea will be disrupted into the first half of 2023. We recognized fixed asset write-offs and inventory charges of $1.1 million and $0.9 million, respectively, related to property destroyed in the fire in 2021. Additionally, we recognized a $4.7 million contingent liability pertaining to damage to nearby property and 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 $2.8 million of fees for various professional services in 2021 in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $2.1 million of compensation and benefits in 2021 for UTIS manufacturing employees, subsequent to the fire. In connection with the UTIS fire, we have recognized anticipated insurance recoveries of $6.9 million in 2021 related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible. In connection with the transitional leaseback of a portion of the facility and certain machinery and equipment acquired from Isola in August 2018, we recognized lease income and related depreciation on leased assets of $1.0 million and $1.9 million, respectively, in 2019. In 2019, we recorded a gain of $0.7 million for the settlement of indemnity claims related to the Isola asset acquisition. Interest Expense, Net The components of “Interest expense, net” were as follows:
| Years Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Interest on revolving credit facility | $ | 892 |  |  | $ | 3,294 |  |  | $ | 7,378 |
Interest rate swap settlements | — |  |  | 3,191 |  |  | (200) |
Line of credit fees | 1,066 |  |  | 715 |  |  | 576 |
Debt issuance amortization costs | 715 |  |  | 593 |  |  | 552 |
Interest on finance leases | 287 |  |  | 134 |  |  | 127 |
Interest income | (541) |  |  | (939) |  |  | (1,610) |
Other | 117 |  |  | 147 |  |  | 46 |
Total interest expense, net | $ | 2,536 |  |  | $ | 7,135 |  |  | $ | 6,869 |

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