Restructuring and Related Activities

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities

10. Restructuring and Related Activities

Restructuring and related activities are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions, and other measures to further optimize operations.

During the year ended December 31, 2023, the Company recorded restructuring charges within the PD segment of $2.5 million for severance pay and benefits related to headcount reductions and for costs associated with transferring certain capacitors manufacturing to existing facilities to further optimize operations. The Company also recorded $1.4 million for severance pay and benefits related to headcount reductions within the Consumer MEMS Microphones segment and $0.8 million for Corporate charges during the year ended December 31, 2023.

During the year ended December 31, 2023, the Company recorded gains of $1.0 million for the sale of certain machinery and equipment that was previously written off through restructuring charges within the Consumer MEMS Microphones segment. The Company also recorded a $1.5 million reversal of restructuring charges within the Consumer MEMS Microphones segment as a result of changes in estimates.

The Company recorded a $1.3 million credit for the aforementioned restructuring charges within Gross profit and the remaining $3.5 million of expense within Operating expenses for the year ended December 31, 2023.

During the year ended December 31, 2022, the Company restructured its MEMS microphones product line through two restructuring programs, which are included within the CMM segment. These actions resulted in the settlement of supplier obligations, non-cash fixed asset write-offs, and severance pay. During the year ended December 31, 2022, the Company recorded restructuring charges of $39.0 million related to this action, including $21.1 million for the settlement of supplier obligations, $13.5 million in fixed asset write-off costs, and $4.4 million in severance pay and benefits.

In addition, during the year ended December 31, 2022, the Company recorded restructuring charges of $2.2 million for severance pay and benefits to rationalize the Intelligent Audio product line workforce, which is included within the CMM segment, and $0.6 million for other costs.

The Company recognized $32.2 million of the aforementioned restructuring charges within Gross profit and the remaining $9.6 million within Operating expenses for year ended December 31, 2022.

During the year ended December 31, 2021, the Company recorded restructuring charges within Operating expenses of $0.5 million. These charges were primarily for actions associated with the Intelligent Audio product line, which is included within the CMM segment.

The following table details restructuring charges incurred by reportable segment for the periods presented:

	Years Ended December 31,
(in millions)	2023		2022		2021
Precision Devices	$	2.5	$	—	$	0.1
MedTech & Specialty Audio	—		—		0.1
Consumer MEMS Microphones	(1.1)		41.2		0.3
Corporate	0.8		0.6		—
Total	$	2.2	$	41.8	$	0.5

The following table details the Company’s severance and other restructuring accrual activity:

(in millions)	Severance Pay and Benefits		Contract Termination and Other Costs		Total
Balance at January 1, 2021	$	1.9	$	0.7	$	2.6
Restructuring charges	0.5		—		0.5
Payments	(2.0)		(0.7)		(2.7)
Balance at December 31, 2021	0.4		—		0.4
Restructuring charges	6.6		35.2		41.8
Payments	(6.2)		(1.6)		(7.8)
Other, including foreign currency (1)	0.1		(11.8)		(11.7)
Balance at December 31, 2022	0.9		21.8		22.7
Restructuring charges	4.7		(2.5)		2.2
Payments	(4.3)		(3.1)		(7.4)
Other, including foreign currency (2)	1.1		0.6		1.7
Balance at December 31, 2023	$	2.4	$	16.8	$	19.2
(1) Other activity during 2022 includes the non-cash disposal of fixed assets of $13.5 million within the MEMS microphones product line.
(2) Other activity during 2023 includes $1.1 million of reserves assumed by the Company with the acquisition of CD within the PD segment.

The severance and restructuring accruals are recorded in the following line items on the Consolidated Balance Sheets:

(in millions)	December 31, 2023		December 31, 2022
Other accrued expenses	$	8.5	$	4.0
Other liabilities	10.7		18.7
Total	$	19.2	$	22.7