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Supplemental Financial Information
 9 Months Ended
Sep. 30, 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 EndedNine Months Ended
(Dollars in thousands)September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Restructuring charges
Manufacturing footprint optimization622 9,027 2,875 9,027 
Total restructuring charges622 9,027 2,875 9,027 
Impairment charges
Fixed asset impairment charges385 334 385 334 
Other impairment charges— 52 — 52 
Total impairment charges385 386 385 386 
Total restructuring and impairment charges$1,007 $9,413 $3,260 $9,413 
Our AES operating segment incurred $1.0 million and $3.2 million of restructuring and impairment charges for the three and nine months ended September 30, 2021, respectively, and our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 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. The majority of the restructuring activities were completed in the first half of 2021. We incurred restructuring charges and related expenses of $0.6 million and $2.9 million for the three and nine months ended September 30, 2021, respectively, of which an immaterial amount is related to severance and related benefits for the three and nine months ended September 30, 2021, respectively. Severance and related benefits activity related to the manufacturing footprint optimization plan is presented in the table below for the nine months ended September 30, 2021:
(Dollars in thousands)Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2020$11,003 
Provisions81 
Payments(8,604)
Foreign currency translation adjustment(532)
Balance as of September 30, 2021$1,948 
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 EndedNine Months Ended
(Dollars in thousands)September 30, 2021September 30, 2020September 30, 2021September 30, 2020
UTIS fire
Fixed assets write-offs— — 891 — 
Inventory charges43 — 363 — 
Professional services577 — 2,171 — 
Lease obligations60 — 600 — 
Lease impairments495 — 495 — 
Compensation & benefits614 — 1,458 — 
Third-party property claims4,650 — 4,650 — 
Other— — 76 — 
Insurance recoveries(5,017)— (6,495)— 
Total UTIS fire1,422 — 4,209 — 
(Gain) loss on sale or disposal of property, plant and equipment9 (4)(673)49 
Economic incentive grants— — — (145)
Total other operating (income) expense, net$1,431 $(4)$3,536 $(96)
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. Operations at this facility will be disrupted into at least the first quarter of 2022. We signed a new lease for a 108,000 square foot facility with a 10-year term and a 5-year renewal option, which went into effect on October 1, 2021.
We recognized fixed asset write-offs and inventory charges of $0.9 million and $0.4 million, respectively, related to property destroyed in the fire for the nine months ended September 30, 2021. Additionally, we recognized a $4.7 million contingent liability pertaining to damage to nearby property and 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 $0.6 million and $2.2 million of fees for various professional services for the three and nine months ended September 30, 2021, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.5 million of compensation and benefits for UTIS manufacturing employees, subsequent to the fire, for the three and nine months ended September 30, 2021, respectively. In connection with the UTIS fire, we have recognized anticipated insurance recoveries of $5.0 million and $6.5 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees, less the applicable $0.3 million deductible, for the three and nine months ended September 30, 2021, respectively.
Interest Expense, Net
The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months EndedNine Months Ended
(Dollars in thousands)September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Interest on revolving credit facility$— $612 $106 $3,079 
Interest rate swap settlements— 2,769 — 3,191 
Line of credit fees292 112 856 430 
Debt issuance amortization costs178 138 536 414 
Interest on finance leases11 35 270 100 
Interest income(64)(135)(409)(724)
Other24 22 93 49 
Total interest expense, net$441 $3,553 $1,452 $6,539