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Supplemental Financial Information | 9 Months Ended
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Sep. 30, 2022
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 |  | Nine Months Ended
(Dollars in thousands) | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Restructuring charges |  |  |  |  |  |  |
Manufacturing footprint optimization | $ | 373 |  |  | $ | 622 |  |  | $ | 907 |  |  | $ | 2,875 |
Total restructuring charges | 373 |  |  | 622 |  |  | 907 |  |  | 2,875 |
Impairment charges |  |  |  |  |  |  |
Fixed asset impairment charges | — |  |  | 385 |  |  | 212 |  |  | 385 |
Total impairment charges | — |  |  | 385 |  |  | 212 |  |  | 385 |
Total restructuring and impairment charges | $ | 373 |  |  | $ | 1,007 |  |  | $ | 1,119 |  |  | $ | 3,260 |
Our AES operating segment incurred $0.4 million and $1.1 million of restructuring and impairment charges for the three and nine months ended September 30, 2022, respectively, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2022. Our AES operating segment incurred $1.0 million and $3.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2021, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 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 were completed in the first half of 2021. We incurred an immaterial amount of restructuring charges and related expenses for the three and nine months ended September 30, 2022, including severance and related benefits. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2022:
(Dollars in thousands) | Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2021 | $ | 1,395 |
Provisions | 363 |
Payments | (1,479) |
Foreign currency translation adjustment | (111) |
Balance as of September 30, 2022 | $ | 168 |
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 |  | Nine Months Ended
(Dollars in thousands) | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
UTIS fire |  |  |  |  |  |  |
Fixed assets write-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 891 |
Inventory charges | (1) |  |  | 43 |  |  | 199 |  |  | 363 |
Professional services | 369 |  |  | 577 |  |  | 1,295 |  |  | 2,171 |
Lease obligations | 91 |  |  | 60 |  |  | 369 |  |  | 600 |
Lease impairments | — |  |  | 495 |  |  | — |  |  | 495 |
Compensation & benefits | 562 |  |  | 614 |  |  | 1,931 |  |  | 1,458 |
Third-party property claims | — |  |  | 4,650 |  |  | — |  |  | 4,650 |
Other | 2 |  |  | — |  |  | 15 |  |  | 76 |
Insurance recoveries | (1,604) |  |  | (5,017) |  |  | (6,646) |  |  | (6,495) |
Total UTIS fire | (581) |  |  | 1,422 |  |  | (2,837) |  |  | 4,209 |
(Gain) loss on sale or disposal of property, plant and equipment | 3 |  |  | 9 |  |  | (15) |  |  | (673) |
Total other operating (income) expense, net | $ | (578) |  |  | $ | 1,431 |  |  | $ | (2,852) |  |  | $ | 3,536 |
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. In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively. We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.4 million, respectively, related to property destroyed in the fire for the nine months ended September 30, 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 incurred $0.6 million and $2.2 million of fees for various professional services for the three and nine months ended September 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 $1.5 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three and nine months ended September 30, 2021, respectively. In connection with the UTIS fire, we recognized insurance recoveries of $5.0 million and $6.5 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 nine months ended September 30, 2021, respectively. Interest Expense, Net The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:
| Three Months Ended |  | Nine Months Ended
(Dollars in thousands) | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Interest on revolving credit facility | $ | 2,831 |  |  | $ | — |  |  | $ | 5,014 |  |  | $ | 106 |
Line of credit fees | 118 |  |  | 292 |  |  | 409 |  |  | 856 |
Debt issuance amortization costs | 178 |  |  | 178 |  |  | 536 |  |  | 536 |
Interest income | (175) |  |  | (64) |  |  | (462) |  |  | (409) |
Other | (10) |  |  | 35 |  |  | 62 |  |  | 363 |
Total interest expense, net | $ | 2,942 |  |  | $ | 441 |  |  | $ | 5,559 |  |  | $ | 1,452 |

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