XML 31 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Supplemental Financial Information
 3 Months Ended
Mar. 31, 2023
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, 2023March 31, 2022
Restructuring charges
Manufacturing footprint optimization$— $69 
Global workforce reduction7,028 — 
Facility consolidations3,473 — 
Total restructuring charges10,501 69 
Total restructuring and impairment charges$10,501 $69 
Allocation of Restructuring and Impairment Charges to Operating Segments
The following table summarizes the allocation of restructuring and impairment charges to our operating segments:
Three Months Ended
(Dollars in thousands)March 31, 2023March 31, 2022
Advanced Electronics Solutions
Allocated restructuring charges$5,446 $69 
Elastomeric Material Solutions
Allocated restructuring charges5,055 — 
Total restructuring and impairment charges$10,501 $69 
Restructuring Charges - Global Workforce Reduction
On February 16, 2023, we announced a reduction in force plan of our global workforce that is expected to be completed in the first half of 2023. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $7.5 million to $8.5 million in pre-tax restructuring charges related to this plan, all of which are expected to be in the form of cash-based expenditures and substantially all of which are expected to be related to employee severance and other termination benefits.
(Dollars in thousands)Global Workforce Reduction Restructuring Severance and Related Benefits
Balance as of December 31, 2022$— 
Provisions6,996 
Payments(2,368)
Foreign currency translation adjustment61 
Balance as of March 31, 2023
$4,689 
Restructuring Charges - Facility Consolidations
In late 2022 and early 2023, we announced our intention to exit certain facilities in the U.S. and Asia. The plan is expected to significantly reduce our manufacturing costs and operating expenses. We estimate that we will incur approximately $5.5 million to $6.5 million in pre-tax restructuring charges related to these facility consolidations, most of which are expected to be in the form of accelerated depreciation.
As part of our facility consolidations plan, on February 17, 2023, we entered into an asset purchase agreement to sell our high-performance engineered cellular elastomer business in our EMS operating segment for a purchase price of $1.8 million. The first phase of the deal, which pertained to the net assets other than the land and building, was completed in late March 2023, while the second phase, which pertains to the sale of the land and building, is expected to be completed in the second quarter of 2023. Of the $1.8 million purchase price, $1.0 million and $0.8 million was allocated to the first and second phases of the deal, respectively. First phase of the deal included $3.7 million in assets and $3.1 million in liabilities. The assets were primarily comprised of accounts receivable, contract assets and inventories, while the liabilities primarily comprised of accounts payable and other accrued liabilities, along with the previously recognized accrual against the net assets of the business based on the estimated fair value of the business in December 2022. We incurred $1.2 million of selling costs in the first quarter of 2023, which were recorded in “Selling, general and administrative expenses” in our condensed consolidated statements of operations.
Other Operating (Income) Expense, Net
The components of “Other operating (income) expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months Ended
(Dollars in thousands)March 31, 2023March 31, 2022
UTIS fire
Inventory charges— 201 
Professional services263 434 
Lease obligations— 232 
Compensation & benefits— 796 
Other— 11 
Insurance recoveries(500)(2,190)
Total UTIS fire(237)(516)
(Gain) loss on sale or disposal of property, plant and equipment18 (15)
Total other operating (income) expense, net$(219)$(531)
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. Commercial production at our new location in Siheung, South Korea commenced in late January 2023.
In connection with the UTIS fire, we recognized insurance recoveries of $0.5 million related to our ongoing insurance claims for business interruption and property damage for the three months ended March 31, 2023. We incurred $0.3 million for various professional services for the three months ended March 31, 2023, in connection with the pursuit of our insurance claims.
In connection with the UTIS fire, we recognized insurance recoveries of $2.2 million related to our ongoing insurance claim for property damage and compensation and benefits of hourly employees for the three months ended March 31, 2022. We incurred $0.4 million for various professional services for the three months ended March 31, 2022, in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $0.8 million for compensation and benefits for UTIS manufacturing employees subsequent to the fire for the three months ended March 31, 2022.
Interest Expense, Net
The components of “Interest expense, net” line item in the condensed consolidated statements of operations, were as follows:
Three Months Ended
(Dollars in thousands)March 31, 2023March 31, 2022
Interest on revolving credit facility$(3,380)$(839)
Line of credit fees(302)(138)
Debt issuance amortization costs(282)(179)
Interest income505 108 
Other(3)(21)
Total interest expense, net$(3,462)$(1,069)