Restructuring and Business Realignment

12 Months Ended

Dec. 31, 2017

Restructuring and Business Realignment [Abstract]

12. Restructuring and Business Realignment

In connection with the Electronics segment restructuring initiative, the Company recorded lease related restructuring charges during the years ended December 31, 2017, 2016 and 2015 of $20, $59 and $183, respectively, as part of SG&A expense. At December 31, 2016, the only remaining restructuring accrual related to the terminated property lease in Mitcheldean, United Kingdom, for which the Company accrued $273 on the consolidated balance sheet as a component of other current liabilities. There were no restructuring accruals as of December 31, 2017.

The expenses for the restructuring activities that relate to the Electronics reportable segment include the following:



		2017		2016		2015
Accrued balance at January 1	$	273	$	458	$	733
Charge to expense		20		59		183
Foreign currency translation		3		(69)		3
Cash payments, net		(296)		(175)		(461)
Accrued balance at December 31	$	-	$	273	$	458

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:


Years ended December 31		2017		2016		2015
Electronics (A)	$	1,223	$	1,180	$	317
PST (B)		589		1,437		403
Unallocated Corporate (C)		-		-		309
Total business realignment charges	$	1,812	$	2,617	$	1,029

(A) Severance costs for the year ended December 31, 2017 related to COGS and SG&A were $56 and $1,167, respectively. Severance costs for the year ended December 31, 2016 related to SG&A and design and development (“D&D”) were $196 and $984, respectively. Severance costs for the year ended December 31, 2015 related to SG&A and D&D were $102 and $215, respectively.

(B) Severance costs for the year ended December 31, 2017 related to COGS, SG&A and D&D were $370, $218 and $1, respectively. Severance costs for the year ended December 31, 2016 related to COGS, SG&A and D&D were $437, $884 and $116, respectively. Severance costs for the year ended December 31, 2015 related to COGS, SG&A and D&D were $172, $117 and $114, respectively.

There were no significant restructuring or business realignment expenses related to the Control Devices reportable segment during the years ended December 31, 2017, 2016 or 2015.

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


Years ended December 31		2017		2016		2015
Cost of goods sold	$	426	$	437	$	172
Selling, general and administrative		1,385		1,080		528
Design and development		1		1,100		329
Total business realignment charges	$	1,812	$	2,617	$	1,029