XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.2.2
Supplemental Financial Information
 9 Months Ended
Sep. 30, 2022
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, 2022September 30, 2021September 30, 2022September 30, 2021
Restructuring charges
Manufacturing footprint optimization$373 $622 $907 $2,875 
Total restructuring charges373 622 907 2,875 
Impairment charges
Fixed asset impairment charges— 385 212 385 
Total impairment charges— 385 212 385 
Total restructuring and impairment charges$373 $1,007 $1,119 $3,260 
Our AES operating segment incurred $0.4 million and $1.1 million of restructuring and impairment charges for the three and nine months ended September 30, 2022, respectively, while our EMS operating segment incurred an immaterial amount of restructuring and impairment charges for the three and nine months ended September 30, 2022. Our AES operating segment incurred $1.0 million and $3.2 million of restructuring and impairment charges, respectively, for the three and nine months ended September 30, 2021, while 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 an immaterial amount of restructuring charges and related expenses for the three and nine months ended September 30, 2022, including severance and related benefits. 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, 2022:
(Dollars in thousands)Manufacturing Footprint Optimization Restructuring Severance
Balance as of December 31, 2021$1,395 
Provisions363 
Payments(1,479)
Foreign currency translation adjustment(111)
Balance as of September 30, 2022$168 
Other Operating (Income) Expense, Net
The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months EndedNine Months Ended
(Dollars in thousands)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
UTIS fire
Fixed assets write-offs$— $— $— $891 
Inventory charges(1)43 199 363 
Professional services369 577 1,295 2,171 
Lease obligations91 60 369 600 
Lease impairments— 495 — 495 
Compensation & benefits562 614 1,931 1,458 
Third-party property claims— 4,650 — 4,650 
Other2 — 15 76 
Insurance recoveries(1,604)(5,017)(6,646)(6,495)
Total UTIS fire(581)1,422 (2,837)4,209 
(Gain) loss on sale or disposal of property, plant and equipment3 9 (15)(673)
Total other operating (income) expense, net$(578)$1,431 $(2,852)$3,536 
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 in South Korea will be disrupted into the first half of 2023.
In connection with the UTIS fire, we recognized insurance recoveries of $1.6 million and $6.6 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three and nine months ended September 30, 2022, respectively. We incurred $0.4 million and $1.3 million for various professional services for the three and nine months ended September 30, 2022, respectively, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.6 million and $1.9 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three and nine months ended September 30, 2022, respectively.
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 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 recognized 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, 2022September 30, 2021September 30, 2022September 30, 2021
Interest on revolving credit facility$2,831 $— $5,014 $106 
Line of credit fees118 292 409 856 
Debt issuance amortization costs178 178 536 536 
Interest income(175)(64)(462)(409)
Other(10)35 62 363 
Total interest expense, net$2,942 $441 $5,559 $1,452