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Supplemental Financial Information
3 Months Ended
Mar. 31, 2021
Supplemental Income Statement Elements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Restructuring and Impairment Charges
The components of “Restructuring and impairment charges” line item in the condensed consolidated statements of operations, which contains restructuring charges and related expenses, as well as impairment charges, were as follows:
Three Months Ended
(Dollars in thousands)March 31, 2021March 31, 2020
Restructuring charges
Manufacturing footprint optimization1,506 — 
Total restructuring charges1,506 — 
Total restructuring and impairment charges$1,506 $— 
Our AES and EMS operating segments incurred $1.5 million and an immaterial amount of restructuring and impairment charges, respectively, for the three months ended March 31, 2021.
Restructuring Charges & Related Expenses - Manufacturing Footprint Optimization
During the third quarter of 2020, we commenced manufacturing footprint optimization plans involving certain Europe and Asia manufacturing locations, primarily impacting our AES operating segment, in order to achieve greater cost competitiveness as well as align capacity with end market demand. We expect the majority of the restructuring activities to be completed by the end of the first half of 2021. We incurred restructuring charges and related expenses of $1.5 million for the three months ended March 31, 2021, of which $0.5 million related to severance and related benefits. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the three months ended March 31, 2021:
(Dollars in thousands)Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2020$11,003 
Provisions508 
Payments(779)
Foreign currency translation adjustment(438)
Balance as of March 31, 2021$10,294 
Other Operating (Income) Expense, Net
The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months Ended
(Dollars in thousands)March 31, 2021March 31, 2020
UTIS fire
Fixed assets write-offs891 — 
Inventory charges280 — 
Professional services522 — 
Lease obligations486 — 
Compensation & benefits244 — 
Insurance recoveries(1,119)— 
Total UTIS fire1,304 — 
(Gain) loss on sale or disposal of property, plant and equipment(89)20 
Total other operating (income) expense, net$1,215 $20 
In early February 2021, there was a fire at our UTIS manufacturing facility in Ansan, South Korea, which manufactures eSorba® polyurethane foams used in portable electronics and display applications. The site was safely evacuated and there were no reported injuries; however, there was extensive damage to the manufacturing site and some damage to nearby property. The cause of the fire is still under investigation. Operations at this facility will be disrupted into at least late 2021. We are currently evaluating alternative facility options.
We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.3 million, respectively, related to property destroyed in the fire for the three months ended March 31, 2021. Additionally, we recognized a $0.5 million contingent liability pertaining to our obligations for the fire damage to the building in connection with the underlying lease agreement. We have incurred $0.5 million of fees for various professional services for the three months ended March 31, 2021, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.2 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three months ended March 31, 2021. In connection with the UTIS fire, we have recognized anticipated insurance recoveries of $1.1 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible, for the three months ended March 31, 2021.
Based on the facts and circumstances known to us as of our filing, while we are aware of other potential liabilities, we are unable presently to estimate the probability or amount of any further contingent liabilities associated with damages to nearby property or other potential costs due to the fire at our UTIS manufacturing facility. As such, no further reserves have been established at this time. We will continue to re-assess as additional information becomes available.
Interest Expense, Net
The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months Ended
(Dollars in thousands)March 31, 2021March 31, 2020
Interest on revolving credit facility$101 $1,079 
Interest rate swap settlements 86 
Line of credit fees273 166 
Debt issuance amortization costs179 138 
Interest on finance leases212 33 
Interest income(195)(320)
Other38 25 
Total interest expense, net$608 $1,207