Business Realignment and Corporate Headquarter Relocation

6 Months Ended

Jun. 30, 2017

Business Realignment and Corporate Headquarter Relocation [Abstract]

Business Realignment and Corporate Headquarter Relocation

(12) Business Realignment and Corporate Headquarter Relocation

Business Realignment

The Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs which are referred to as business realignment charges.

Business realignment charges by reportable segment were as follows:


		Three months ended				Six months ended
		June 30,				June 30,
		2017		2016		2017		2016
Electronics (A)	$	56	$	-	$	56	$	1,180
PST (B)		267		309		438		1,031
Total business realignment charges	$	323	$	309	$	494	$	2,211

(A) Severance costs for the three and six months ended June 30, 2017 related to cost of goods sold (“COGS”) were $56. There were no severance costs for the three months ended June 30, 2016. Severance costs for the six months ended June 30, 2016 related to selling, general and administrative (“SG&A”) and design and development (“D&D”) were $196 and $984, respectively.

(B) Severance costs for the three months ended June 30, 2017 related to COGS and SG&A were $248 and $19, respectively. Severance costs for the three months ended June 30, 2016 related to COGS, SG&A and D&D were $108, $160 and $41, respectively. Severance costs for the six months ended June 30, 2017 related to COGS and SG&A were $338 and $100, respectively. Severance costs for the six months ended June 30, 2016 related to COGS, SG&A and D&D were $287, $628 and $116, respectively.

Business realignment charges classified by statement of operations line item were as follows:


		Three months ended				Six months ended
		June 30,				June 30,
		2017		2016		2017		2016
Cost of goods sold	$	304	$	108	$	394	$	287
Selling, general and administrative		19		160		100		824
Design and development		-		41		-		1,100
Total business realignment charges	$	323	$	309	$	494	$	2,211

Corporate Headquarter Relocation

In March 2016, the Company announced the relocation of its corporate headquarters from Warren, Ohio to Novi, Michigan. As a result, the Company incurred relocation costs of $272 for the three and six months ended June 2016 which were recorded within SG&A expenses in the condensed consolidated statements of operations.

In connection with the headquarter relocation, the Company was approved for a Michigan Business Development Program grant of up to $1,400 based upon the number of new jobs created in Michigan through 2021. As a result of the attainment of the first milestone, grant income of $338 was recognized for the three and six months ended June 30, 2017 within SG&A expense in the condensed consolidated statements of operations.