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Business Realignment and Restructuring
6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Business Realignment and Restructuring Business Realignment and Restructuring
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”). 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. We do not expect to incur additional costs related to the Canton Restructuring.
The settlement of liabilities associated with for the Canton Restructuring that relate to the Control Devices reportable segment include the following:
Accrual as of
January 1, 2022
2022 Charge
to Expense
UtilizationAccrual as of
June 30, 2022
CashNon-Cash
Employee termination benefits$93 $— $(93)$— $— 
Total$93 $— $(93)$— $— 
In addition to 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 that are referred to as business realignment charges. Realignment expense for the three months ended June 30, 2023 was primarily related to the centralization of the product line management and sales functions.
Business realignment charges incurred by reportable segment were as follows:
Three months ended
June 30,
Six months ended
June 30,
2023202220232022
Control Devices (A)
$379 $— $379 $— 
Electronics (B)
1,347 — 1,656 — 
Stoneridge Brazil (C)
 —  34 
Unallocated Corporate (D)
184 — 1,137 — 
Total business realignment charges$1,910 $— $3,172 $34 
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(A)
Severance costs for the three and six months ended June 30, 2023 related to COGS and SG&A were $369 and $10, respectively.
(B)
Severance costs for the three months ended June 30, 2023 related to COGS and SG&A were $82 and $1,265, respectively. Severance costs for the six months ended June 30, 2023 related to COGS and SG&A were $257 and $1,399, respectively.
(C)
Severance costs for the six months ended June 30, 2022 related to SG&A were $34.
(D)
Employee separation related costs for the three and six months ended June 30, 2023 related to SG&A were $169 and $1,122, respectively. Employee separation related costs for the three and six months ended June 30, 2023 related to D&D were $15.
Business realignment charges incurred, classified by statement of operations line item were as follows:
Three months ended
June 30,
Six months ended
June 30,
2023202220232022
Cost of goods sold$451 $— $626 $— 
Selling, general and administrative1,444 — 2,531 34 
Design and development15 — 15 — 
Total business realignment charges$1,910 $— $3,172 $34