On May 19, 2020, the Company committed to the strategic exit of its Control Devices particulate matter (“PM”) sensor product line. The decision to exit the PM sensor product line was made after consideration of the decline in the market outlook for diesel passenger vehicles, the current and expected profitability of the product line and the Company’s strategic focus on aligning resources with the greatest opportunities. In conjunction with the strategic exit of the PM sensor product line, the Company entered into an asset purchase agreement related to the sale of the PM sensor product line during the first quarter of 2021. Refer to Note 16 of the condensed consolidated financial statements for additional details regarding the sale.

As a result of the PM sensor restructuring actions, the Company recognized expense of $675 and $342 for the three months ended September 30, 2021 and 2020, respectively, for non-cash fixed asset charges, including accelerated depreciation of PM sensor related fixed assets, employee severance and termination costs and other related costs. For the three months ended September 30, 2021 restructuring related costs of $605, $(31) and $101 were recognized in COGS, SG&A and D&D, respectively. For the three months ended September 30, 2020 restructuring related costs of $340 and $2 were recognized in COGS and SG&A, respectively. The Company recognized expense of $2,329 and $2,894 for the nine months ended September 30, 2021 and 2020, respectively, for non-cash fixed asset charges, including impairment and accelerated depreciation of PM sensor related fixed assets, employee severance and termination costs and other related costs. For the nine months ended September 30, 2021 restructuring related costs of $1,505, $642 and $182 were recognized in COGS, SG&A and D&D, respectively. For the nine months ended September 30, 2020 restructuring related costs of $503 and $2,391 were recognized in COGS and SG&A, respectively. The only remaining costs relate to potential commercial settlements and legal fees which we continue to negotiate. The estimated range of additional cost related to these settlements and fees is approximately $1,400 to $4,200.

The expenses for the exit of the PM sensor line that relate to the Control Devices reportable segment include the following:

On January 10, 2019, the Company committed to a restructuring plan that resulted in the closure of the Canton, Massachusetts facility (“Canton Facility”) on March 31, 2020 and the consolidation of manufacturing operations at that site into other Company locations (“Canton Restructuring”). Company management informed employees at the Canton Facility of this restructuring decision on January 11, 2019. The costs for the Canton Restructuring included employee severance and termination costs, contract terminations costs, professional fees and other related costs such as moving and set-up costs for equipment and costs to restore the engineering function previously located at the Canton facility.

As a result of the Canton Restructuring actions, the Company recognized expense of $0 and $197 respectively, for the three months ended September 30, 2021 and 2020 for employee severance and termination costs and other restructuring related costs. For the three months ended September 30, 2020 employee severance and termination costs and other related restructuring costs of $88 and $109 were recognized in COGS and D&D, respectively, in the condensed consolidated statement of operations. The Company recognized expense of $13 and $2,881 respectively, for the nine months ended September 30, 2021 and 2020 for employee severance and termination costs and other restructuring related costs. For the nine months ended September 30, 2021 other restructuring related costs of $13 were recognized in D&D in the condensed consolidated statement of operations. For the nine months ended September 30, 2020 employee severance and termination costs and other related restructuring costs of $1,659, $549 and $673 were recognized in COGS, SG&A and D&D, respectively, in the condensed consolidated statement of operations. We do not expect to incur additional costs related to the Canton Restructuring. Refer to Note 8 and Note 16 to the condensed consolidated financial statements for additional details regarding the third-party lease and sale, respectively, of the Canton facility.

The expenses for the Canton Restructuring that relate to the Control Devices reportable segment include the following:

In the fourth quarter of 2018, the Company undertook restructuring actions for the Electronics segment affecting the European Aftermarket business and China operations. In the second quarter of 2020, the Company finalized plans to move its European Aftermarket sales activities in Dundee, Scotland which resulted in incurring contract termination costs as well as employee severance and termination costs. In addition, the Company announced an additional restructuring program to transfer the European production of its controls product line to China. As a result of these actions, the Company recognized expense of $36 and $567, respectively, for the three months ended September 30, 2021 and 2020 for employee severance and termination costs and other related costs and non-cash fixed asset charges for accelerated depreciation of fixed assets and other related costs. Electronics segment restructuring costs (benefit) recognized in COGS and SG&A in the condensed consolidated statement of operations for the three months ended September 30, 2021 were $34 and $2, respectively. Electronics segment restructuring costs recognized in COGS, SG&A and D&D in the condensed consolidated statement of operations were $132, $383, and $52 for the three months ended September 30, 2020, respectively. The Company recognized expense of $256 and $2,195, respectively, for the nine months ended September 30, 2021 and 2020 for employee severance and termination costs, contract termination costs, other related costs and non-cash fixed asset charges for accelerated depreciation of fixed assets and other related costs. Electronics segment restructuring costs recognized in COGS, SG&A, and D&D in the condensed consolidated statement of operations for the three months ended September 30, 2021 were $37, $176 and $43, respectively. Electronics segment restructuring costs recognized in COGS, SG&A and D&D in the condensed consolidated statement of operations were $132, $1,634 and $429 for the nine months ended September 30, 2020, respectively. The Company expects to incur an immaterial amount of restructuring costs related to these actions through the fourth quarter of 2021.

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

In addition to the specific restructuring activities, 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.

(A)

Severance costs for the three months ended September 30, 2020 related to COGS, D&D, SG&A were $70, $35 and $178, respectively. Severance costs for the nine months ended September 30, 2021 related to SG&A were $192. Severance costs for the nine months ended September 30, 2020 related to COGS, D&D and SG&A were $673, $284 and $745, respectively.

(B)

Severance (benefit) costs for the three months ended September 30, 2021 related to COGS, SG&A and D&D were $1, $9 and $(26), respectively. Severance costs for the nine months ended September 30, 2021 related to COGS, SG&A and D&D were $1, $(13) and $9, respectively. Severance costs for the three months ended September 30, 2020 related to COGS and SG&A were $33 and $72, respectively. Severance costs for the nine months ended September 30, 2020 related to COGS, D&D and SG&A were $356, $228 and $826, respectively.

(C)

Severance costs for the nine months ended September 30, 2021 related to COGS and SG&A were $7 and $52, respectively. Severance costs for the three months ended September 30, 2020 related to SG&A were $12. Severance costs for the nine months ended September 30, 2020 related to COGS and SG&A were $86 and $79 respectively.

(D)	Severance costs for the three months ended September 30, 2021 and 2020 related to SG&A were $1,096 and $1, respectively. Severance costs for the nine months ended September 30, 2021 and 2020 related to SG&A were $1,138 and $311, respectively.

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


		Three months ended				Nine months ended
		September 30,				September 30,
	2021		2020		2021		2020
Cost of goods sold	$	1	$	103	$	8	$	1,115
Selling, general and administrative		1,105		263		1,369		1,961
Design and development		(26)		35		9		512
Total business realignment charges	$	1,080	$	401	$	1,386	$	3,588