Business Realignment

6 Months Ended

Jun. 30, 2018

(12) 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,
		2018		2017		2018		2017
Control Devices (A)	$	128	$	-	$	128	$	-
Electronics (B)		295		56		295		56
PST (C)		97		267		319		438
Total business realignment charges	$	520	$	323	$	742	$	494

(A)

Severance costs for the three and six months ended June 30, 2018 related to design and development (“D&D”) were $128.

(B)

Severance costs for the three and six months ended June 30, 2018 related to SG&A were $295. Severance costs for the three and six months ended June 30, 2017 related to COGS were $56.

(C)

Severance costs for the three and six months ended June 30, 2018 related to SG&A were $71 and $293, respectively. Severance costs for the three and six months ended June 30, 2018 related to COGS were $26. 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 six months ended June 30, 2017 related to COGS and SG&A were $338 and $100, respectively.

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


		Three months ended				Six months ended
		June 30,				June 30,
		2018		2017		2018		2017
Cost of goods sold	$	26	$	304	$	26	$	394
Selling, general and administrative		366		19		588		100
Design and development		128		-		128		-
Total business realignment charges	$	520	$	323	$	742	$	494