XML 31 R22.htm IDEA: XBRL DOCUMENT
v3.23.3

Supplemental Financial Information | 9 Months Ended
--- | ---
Sep. 30, 2023
Supplemental Income Statement Elements [Abstract] |
Supplemental Financial Information | Supplemental Financial Information Restructuring and Impairment Charges The components of the “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, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Restructuring charges |  |  |  |  |  |  |
Manufacturing footprint optimization | $ | — |  |  | $ | 373 |  |  | $ | — |  |  | $ | 907 |
Global workforce reduction | 656 |  |  | — |  |  | 8,746 |  |  | — |
Facility consolidations | 1,265 |  |  | — |  |  | 7,615 |  |  | — |
Total restructuring charges | 1,921 |  |  | 373 |  |  | 16,361 |  |  | 907 |
Impairment charges |  |  |  |  |  |  |
Fixed asset impairment charges | — |  |  | — |  |  | — |  |  | 212 |
Total impairment charges | — |  |  | — |  |  | — |  |  | 212 |
Total restructuring and impairment charges | $ | 1,921 |  |  | $ | 373 |  |  | $ | 16,361 |  |  | $ | 1,119 |
Allocation of Restructuring and Impairment Charges to Operating Segments The following table summarizes the allocation of restructuring and impairment charges to our operating segments:
| Three Months Ended |  | Nine Months Ended
(Dollars in thousands) | September 30, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Advanced Electronics Solutions |  |  |  |  |  |  |
Allocated restructuring charges | $ | 1,636 |  |  | $ | 371 |  |  | $ | 10,213 |  |  | $ | 920 |
Allocated impairment charges | — |  |  | — |  |  | — |  |  | 212 |
Elastomeric Material Solutions |  |  |  |  |  |  |
Allocated restructuring charges | 285 |  |  | 2 |  |  | 6,148 |  |  | (13) |
Allocated impairment charges | — |  |  | — |  |  | — |  |  | — |
Total restructuring and impairment charges | $ | 1,921 |  |  | $ | 373 |  |  | $ | 16,361 |  |  | $ | 1,119 |
Restructuring Charges - Global Workforce Reduction On February 16, 2023, we announced a reduction in force plan of our global workforce that was substantially completed in the first half of 2023, and will conclude in the fourth quarter of 2023. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $8.7 million to $8.9 million in pre-tax restructuring charges related to this plan, all of which are expected to be in the form of cash-based expenditures and substantially all of which are expected to be related to employee severance and other termination benefits.
(Dollars in thousands) | Global Workforce Reduction Restructuring Severance and Related Benefits
Balance as of December 31, 2022 | $ | — |
Provisions | 8,476 |
Payments | (8,133) |
Foreign currency translation adjustment | 41 |
Balance as of September 30, 2023 | $ | 384 |
Restructuring Charges - Facility Consolidations In late 2022 and early 2023, we announced our intention to exit certain facilities in the U.S. and Asia. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $7.7 million to $8.3 million in pre-tax restructuring charges related to these facility consolidations, most of which are expected to be in the form of accelerated depreciation. As part of our facility consolidations plan, on February 17, 2023, we entered into an asset purchase agreement to sell our high-performance engineered cellular elastomer business in our EMS operating segment for a purchase price of $1.8 million. The first phase of the deal, which pertained to the net assets other than the land and building, was completed in late March 2023, while the second phase, which pertained to the sale of the land and building, was completed in early September 2023. Of the $1.8 million purchase price, $1.0 million and $0.8 million were allocated to the first and second phases of the deal, respectively. The first phase of the deal included $3.7 million in assets and $3.1 million in liabilities. The assets were primarily comprised of accounts receivable, contract assets and inventories, while the liabilities were primarily comprised of accounts payable and other accrued liabilities, along with the previously recognized accrual against the net assets of the business based on the estimated fair value of the business in December 2022. We incurred $1.2 million of selling costs in the first quarter of 2023, which were recorded in “Selling, general and administrative expenses” in our condensed consolidated statements of operations. As of September 30, 2023 we recognized $16.1 million of assets held for sale within the “Other current assets” financial statement line item of our condensed consolidated statements of financial position. This includes $13.1 million for land and building at our Price Road facility in Chandler, Arizona and $3.0 million of land and building at one of our Suzhou, China facilities. During the third quarter of 2023, the previously disclosed asset purchase agreement to sell our Price Road facility was terminated and the facility remains held for sale. 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, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
UTIS fire |  |  |  |  |  |  |
Inventory charges | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | 199 |
Professional services | 77 |  |  | 369 |  |  | 596 |  |  | 1,295 |
Lease obligations | — |  |  | 91 |  |  | — |  |  | 369 |
Compensation & benefits | — |  |  | 562 |  |  | — |  |  | 1,931 |
Other | — |  |  | 2 |  |  | — |  |  | 15 |
Insurance recoveries | (730) |  |  | (1,604) |  |  | (7,424) |  |  | (6,646) |
Total UTIS fire | (653) |  |  | (581) |  |  | (6,828) |  |  | (2,837) |
(Gain) loss on sale or disposal of property, plant and equipment | (193) |  |  | 3 |  |  | (679) |  |  | (15) |
Total other operating (income) expense, net | $ | (846) |  |  | $ | (578) |  |  | $ | (7,507) |  |  | $ | (2,852) |
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. Commercial production at our new location in Siheung, South Korea commenced in late January 2023. In connection with the UTIS fire, we recognized insurance recoveries of $0.7 million and $7.4 million related to our ongoing insurance claims for business interruption and property damage for the three and nine months ended September 30, 2023, respectively. We incurred $0.1 million and $0.6 million for various professional services for the three and nine months ended September 30, 2023, respectively, in connection with the pursuit of our insurance claims. 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. 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, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Interest on revolving credit facility | $ | (1,939) |  |  | $ | (2,831) |  |  | $ | (8,306) |  |  | $ | (5,014) |
Line of credit fees | (219) |  |  | (118) |  |  | (565) |  |  | (409) |
Debt issuance amortization costs | (123) |  |  | (178) |  |  | (527) |  |  | (536) |
Interest income | 133 |  |  | 175 |  |  | 978 |  |  | 462 |
Other | (180) |  |  | 10 |  |  | (207) |  |  | (62) |
Total interest expense, net | $ | (2,328) |  |  | $ | (2,942) |  |  | $ | (8,627) |  |  | $ | (5,559) |

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