Restructuring

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

Note 4 – Restructuring

Manufacturing Footprint Rationalization

In September 2019, the Company committed to a restructuring plan (“Plan”) to improve the Company’s manufacturing productivity and rationalize its footprint. Under this Plan, the Company is relocating and consolidating certain automotive electronics manufacturing plants in North America and China. During 2021, the Company completed the closures and relocation of its automotive electronics manufacturing operations from Burlington, Canada to Celaya, Mexico and from Longgang, Shenzhen, China to Bantian, Shenzhen, China. As of September 30, 2022, the electronics manufacturing in Acuña, Mexico continues to transition to Celaya, Mexico.

During the three and nine months ended September 30, 2022, the Company recognized restructuring expense of $0 and $50, respectively, for employee separation costs and $0 and $198, respectively, for other costs. During the three and nine months ended September 30, 2021, the Company recognized restructuring expense of $294 and $1,259 for employee separation costs, respectively, $26 and $218 for accelerated depreciation, respectively, and $617 and $1,269 for other costs, respectively.

The Company has recorded approximately $10,353 of restructuring expenses since the inception of this program and as of September 30, 2022, $538 remains accrued. Actions under the Plan are expected to be substantially completed by the end of 2022 and future expenses are expected to be less than $1,000.

Other Restructuring Activities

As part of the Company’s continued efforts to optimize its cost structure, the Company has undertaken several discrete restructuring actions. During the three and nine months ended September 30, 2022, the Company recognized $6 and $313,

respectively, for other costs. During the three and nine months ended September 30, 2021, the Company recognized $(188) and $885, respectively, of employee separation costs. These restructuring expenses were primarily associated with restructuring actions focused on the rotation of our manufacturing footprint to best cost locations and the reduction of global overhead costs.

Restructuring Expenses By Reporting Segment

The following table summarizes restructuring expense for the three and nine months ended September 30, 2022 and 2021 by reporting segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Automotive	$	6	$	701	$	561	$	2,567
Medical		—		—		—		—
Corporate		—		48		—		1,064
Total	$	6	$	749	$	561	$	3,631

Restructuring Liability

Restructuring liabilities are classified as other current liabilities in the consolidated condensed balance sheets. The following table summarizes restructuring liability for the nine months ended September 30, 2022:

	Employee Separation Costs			Other Related Costs			Total
Balance at December 31, 2021	$	1,494		$	—		$	1,494
Additions, charged to restructuring expenses		—			131			131
Cash payments		(544	)		(131	)		(675	)
Change in estimate		50			—			50
Currency translation		(18	)		—			(18	)
Balance at March 31, 2022	$	982		$	—		$	982
Additions, charged to restructuring expenses		—			374			374
Cash payments		(83	)		(97	)		(180	)
Currency translation		(32	)		—			(32	)
Balance at June 30, 2022	$	867		$	277		$	1,144
Additions, charged to restructuring expenses		—			6			6
Cash payments		(248	)		(6	)		(254	)
Currency translation		(31	)		—			(31	)
Balance As of September 30, 2022	$	588		$	277		$	865