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Costs Associated with Exit and Restructuring Activities
12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Costs Associated with Exit and Restructuring Activities

NOTE 9 — Costs Associated with Exit and Restructuring Activities

Restructuring charges are reported as a separate line within operating earnings in the Consolidated Statements of Earnings (Loss). Total restructuring charges were:

 

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Restructuring charges

 

$

7,074

 

 

$

1,912

 

 

$

1,687

 

 

September 2020 Plan

In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities. This plan included transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions ("September 2020 Plan"). The restructuring cost of the September 2020 Plan is now estimated to be in the range of $3,900 to $4,500, including workforce reduction charges, building and equipment relocation charges, other contract and asset-related costs. We have incurred $3,896 in program costs to date. During the twelve months ended December 31, 2023, we recorded $1,837 in restructuring charges comprised of $513 and $1,324 in workforce reduction and asset impairment charges respectively. The total restructuring liability associated with these actions as of December 31, 2023 was $83. The total restructuring liability as of December 31, 2022 was $634.

Closure and Consolidation of Juarez Manufacturing Facility and Operations

During the first quarter of 2023, we announced the shutdown of our Juarez manufacturing facility. As a part of this activity, operations from the Juarez plant are being consolidated into our expanded Matamoros facility (collectively, the "Matamoros Consolidation"). We expect the Matamoros Consolidation to be completed in 2024. The total restructuring cost of the Matamoros Consolidation is now estimated to be in the range of $4,000 and $5,000, including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. In addition to these charges, we expect to incur an additional $1,500 to $2,500 of other costs relating to the Matamoros Consolidation that would not qualify as restructuring charges, but represent duplicative expenses arising from the transition process such as excess rent, utilities, personnel-related and other costs.

During the year ended December 31, 2023, we incurred $3,699 in restructuring costs associated with the Matamoros Consolidation, comprised of $2,572, $200, $63, and $864 in workforce reduction, building and equipment relocation costs, asset impairment and other charges, respectively. We also incurred $571 in other related costs. The restructuring liability associated with the Matamoros Consolidation was $194 and $17 as of December 31, 2023 and December 31, 2022.

Other Restructuring Activities

During the year ended December 31, 2023, we incurred total other restructuring charges of $1,539, comprised of $942, $279 and $318 in workforce reduction, building and equipment relocation costs, and asset impairment and other charges, respectively. The remaining restructuring liability associated with these actions was $246 and $218 at December 31, 2023 and December 31, 2022, respectively.

The following table displays the restructuring liability activity for all plans for the year ended December 31, 2023:

 

Restructuring liability at January 1, 2023

 

$

869

 

Restructuring charges

 

 

7,074

 

Cost paid

 

 

(6,056

)

Other activities(1)

 

 

(1,364

)

Restructuring liability at December 31, 2023

 

$

523

 

 

(1)
Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges.

The total liability of $523 is included in accrued expenses and other liabilities at December 31, 2023.