Restructuring Expenses

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

Separation Program

During the second quarter of 2024 we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada as part of our commitment to optimizing our cost structure and providing professional development opportunities to our employees. The offer period ended in the second quarter of 2024. In the third quarter of 2024, we expanded the program to include involuntary separations. Costs primarily comprise of compensation expense and enhanced medical benefits, and are recorded in restructuring expenses in our statements of operations as a one-time termination benefit. Voluntary retirement incentive costs were recognized when the employee accepted the offer or over their remaining period of service based on the agreed retirement date. Involuntary separation costs were recognized when the respective criteria were met and expenses were recorded either during the third quarter of 2024 or over the remaining service period for the affected employees. We anticipate that the program will be substantially complete by the end of 2027. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $7.7 million.

Activity for the nine months ended September 30, 2025 related to the separation program workforce reduction consisted of the following (in thousands):


Exit activity liability at December 31, 2024		$	4,776
Restructuring costs provided for during 2025	(a)	562
Cash payments		(4,241)
Exit activity liability at September 30, 2025		$	1,097

(a)Consists of $0.4 million in our Vehicle Control segment, and $0.2 million in our Temperature Control segment.

Cost Reduction Initiative

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. In 2025, we extended the program for plans to relocate additional product lines from certain plants in the United States and Canada to our existing manufacturing facilities in Mexico. We anticipate that the Cost Reduction Initiative will be substantially complete by the end of 2026. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $6.1 million.

Activity for the nine months ended September 30, 2025 related to the Cost Reduction Initiative consisted of the following (in thousands):


		Workforce Reduction		Other Exit Costs		Total
Exit activity liability at December 31, 2024		$	232	$	—	$	232
Restructuring costs provided for during 2025	(a)	397		1,078		1,475
Cash payments		(273)		(1,078)		(1,351)
Exit activity liability at September 30, 2025		$	356	$	—	$	356

(a)Consists of $1.4 million in our Vehicle Control segment, and $0.1 million in our Engineered Solutions segment.

Restructuring activities are included within “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet. We regularly evaluate productivity initiatives and may either extend existing restructuring programs or initiate new restructuring programs in the future.