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Supplemental Financial Information | 9 Months Ended
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Sep. 30, 2024
Supplemental Income Statement Elements [Abstract] |
Supplemental Financial Information | Balance Sheet Items Restricted Cash Our restricted cash balance, which was subject to contractual restrictions and not readily available, was recorded in the “Cash and cash equivalents” line item in the condensed consolidated statements of financial position, and served as collateral for letters of credit related to our environmental and workers’ compensation liabilities. This arrangement was terminated in the third quarter of 2024. Our restricted cash balance as of September 30, 2024 and December 31, 2023 was as follows:
(Dollars in millions) | September 30, 2024 |  | December 31, 2023
Restricted Cash | $ | — |  |  | $ | 2.2 |
Accounts Receivable The “Accounts receivable, less allowance for credit losses” line item in the condensed consolidated statements of financial position consisted of the following:
(Dollars in millions) | September 30, 2024 |  | December 31, 2023
Accounts Receivable - Trade | $ | 141.3 |  |  | $ | 143.2 |
Accounts Receivable - Other | 15.0 |  |  | 18.7 |
Total | $ | 156.3 |  |  | $ | 161.9 |
Accounts Payable The “Accounts payable” line item in the condensed consolidated statements of financial position consisted of the following:
(Dollars in millions) | September 30, 2024 |  | December 31, 2023
Accounts Payable - Trade | $ | 43.6 |  |  | $ | 46.3 |
Accounts Payable - Other | 3.6 |  |  | 4.0 |
Total | $ | 47.2 |  |  | $ | 50.3 |
Supplemental Financial Information Restructuring and Impairment Charges The components of the “Restructuring and impairment charges” line item in the condensed consolidated statements of operations were as follows:
| Three Months Ended |  | Nine Months Ended
(Dollars in millions) | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Restructuring charges |  |  |  |  |  |  |
Global workforce reduction | $ | — |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | 8.8 |
Facility consolidations | — |  |  | 1.3 |  |  | 0.2 |  |  | 7.6 |
Manufacturing footprint consolidation | 5.9 |  |  | — |  |  | 6.3 |  |  | — |
R&D facility exit | 0.4 |  |  | — |  |  | 1.3 |  |  | — |
Total restructuring charges | $ | 6.3 |  |  | $ | 2.0 |  |  | $ | 7.8 |  |  | $ | 16.4 |
Total restructuring and impairment charges | $ | 6.3 |  |  | $ | 2.0 |  |  | $ | 7.8 |  |  | $ | 16.4 |
Restructuring Charges - Global Workforce Reduction On February 16, 2023, we announced a plan to reduce our global workforce that was substantially completed in the first half of 2023, and concluded in the fourth quarter of 2023. The plan significantly reduced our manufacturing costs and operating expenses. We incurred $8.8 million in pre-tax restructuring charges related to this plan, of which $0.7 million and $8.8 million was incurred in the three and nine months ended September 30, 2023, respectively, and substantially all of which was in the form of cash-based expenditures, employee severance and other termination benefits. 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 significantly reduced our manufacturing costs and operating expenses. We have incurred $8.3 million in pre-tax restructuring charges to-date related to these facility consolidations, of which an immaterial amount and $0.2 million was incurred in the three and nine months ended September 30, 2024, respectively, and $1.3 million and $7.6 million was incurred in the three and nine months ended September 30, 2023, respectively, the majority of which were in the form of accelerated depreciation. As part of our facility consolidations plan, in February 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 2023, which were recorded in “Selling, general and administrative expenses” in our condensed consolidated statements of operations. As of September 30, 2024, and as of December 31, 2023, we included $13.1 million of assets held for sale within the “Other current assets” financial statement line item of our condensed consolidated statements of financial position, representing the land and building at our Price Road facility in Chandler, Arizona. We expect the sale of this facility to be completed in late 2024 or early 2025. In September 2023, we entered into an agreement to sell one of our Suzhou, China facilities, which had a carrying value of $3.0 million, for $6.8 million resulting in a pre-tax gain of $1.9 million, inclusive of selling and disposal costs. The sale was completed in December 2023. The net impact of this transaction was recorded in the “Other operating (income) expense, net” line item in the condensed consolidated statements of operations. Restructuring Charges - Manufacturing Footprint Consolidation On June 6, 2024, we announced our intent to consolidate our high frequency circuit material manufacturing operations, impacting our Evergem, Belgium facility. We anticipate the plan to be completed in the second half of 2025. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate this will improve operating income between $7.0 million and $9.0 million annually. We expect to incur approximately $22.0 million to $28.0 million in pre-tax restructuring charges related to this plan, the majority of which are expected to be in the form of cash-based expenditures related to employee severance and other termination benefits. Most of the non-cash expenditures will be in the form of accelerated depreciation. We incurred $5.9 million of restructuring charges related to this plan in the three months ended September 30, 2024, of which $4.7 million relates to severance and other termination benefits and $1.2 million in the form of accelerated depreciation. We incurred $6.3 million of restructuring charges related to this plan in the nine months ended September 30, 2024, of which $4.7 million relates to severance and other termination benefits and $1.6 million in the form of accelerated depreciation. Severance and related benefits activity related to the manufacturing footprint consolidation plan is presented in the table below for the nine months ended September 30, 2024:
(Dollars in thousands) | Manufacturing Footprint Consolidation Restructuring Severance and Related Benefits
Balance as of December 31, 2023 | $ | — |
Provisions | 4.7 |
Payments | — |
Foreign currency translation adjustment | 0.1 |
Balance as of September 30, 2024 | $ | 4.8 |
Restructuring Charges - R&D Facility Exit On June 13, 2024, we announced that we will close our Burlington, Massachusetts Innovation Center facility by the end of 2024. We expect to incur approximately $1.3 million to $1.7 million in pre-tax restructuring charges related to this plan, almost all of which are expected to be in the form of cash-based expenditures related to employee severance and other termination benefits or non-cash expenditures in the form of accelerated depreciation and amortization. We incurred $0.4 million in pre-tax restructuring charges in the three months ended September 30, 2024, respectively, of which $0.3 million relates to severance and other termination benefits. We incurred $1.3 million in pre-tax restructuring charges in the nine months ended September 30, 2024, of which $0.6 million relates to severance and other termination benefits and $0.7 million in the form of accelerated depreciation. 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 millions) | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Advanced Electronics Solutions |  |  |  |  |  |  |
Allocated restructuring charges | $ | 6.1 |  |  | $ | 1.6 |  |  | $ | 7.2 |  |  | $ | 10.2 |
Elastomeric Material Solutions |  |  |  |  |  |  |
Allocated restructuring charges | 0.2 |  |  | 0.4 |  |  | 0.6 |  |  | 6.2 |
Total restructuring and impairment charges | $ | 6.3 |  |  | $ | 2.0 |  |  | $ | 7.8 |  |  | $ | 16.4 |
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 millions) | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
UTIS fire |  |  |  |  |  |  |
Professional services | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.6 |
Insurance recoveries | — |  |  | (0.7) |  |  | — |  |  | (7.4) |
Total UTIS fire | — |  |  | (0.6) |  |  | — |  |  | (6.8) |
(Gain) loss on sale or disposal of property, plant and equipment | — |  |  | (0.2) |  |  | — |  |  | (0.7) |
Total other operating (income) expense, net | $ | — |  |  | $ | (0.8) |  |  | $ | — |  |  | $ | (7.5) |
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. 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 millions) | September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest on revolving credit facility | $ | — |  |  | $ | (1.9) |  |  | $ | (0.5) |  |  | $ | (8.3) |
Line of credit fees | (0.2) |  |  | (0.3) |  |  | (0.8) |  |  | (0.6) |
Debt issuance amortization costs | (0.2) |  |  | (0.1) |  |  | (0.4) |  |  | (0.5) |
Interest income | 0.5 |  |  | 0.2 |  |  | 0.8 |  |  | 1.0 |
Other | (0.1) |  |  | (0.2) |  |  | (0.1) |  |  | (0.2) |
Total interest expense, net | $ | — |  |  | $ | (2.3) |  |  | $ | (1.0) |  |  | $ | (8.6) |

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