The Company continuously monitors market developments, industry trends and changing customer needs and in response, may undertake restructuring actions, as necessary, to execute management’s strategy, streamline operations and optimize the Company’s cost structure. Restructuring actions may include the realignment of existing manufacturing footprint, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs.

These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly statutory requirements or other contractual agreements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination.

On September 19, 2023, the Company committed to a restructuring plan (“2023 Plan”) to improve the Company’s manufacturing productivity and rationalize its footprint. Under this 2023 Plan, the Company will relocate certain existing manufacturing and related activities in its Greenville, South Carolina facility to a new facility in Monterrey, Mexico.

The Company expects to incur total costs of between $14,000 and $18,000, of which between $13,000 and $17,000 are expected to be cash expenditures. The total expected costs include employee severance, retention and termination costs of between $2,000 and $4,000, capital expenditures of between $7,000 and $8,000 and non-cash expenses for accelerated depreciation and impairment of fixed assets of approximately $1,000. The Company also expects to incur other transition costs including recruiting, relocation, and machinery and equipment move and set up costs of between $4,000 and $5,000. The actions under this 2023 Plan are expected to be substantially completed by the end of 2025. The actual timing, costs and savings of the 2023 Plan may differ materially from the Company’s current expectations and estimates.

During the three and nine months ended September 30, 2023, the Company did not recognize any material amounts of restructuring expense.

The Company has undertaken several discrete restructuring actions. During the three and nine months ended September 30, 2023, the Company recognized $1,099 and $2,642, respectively, for employee separation costs and $0 and $770, respectively, of other costs. During the three and nine months ended September 30, 2022, the Company recognized $0 and $50, respectively, for employee separation costs and $6 and $511, respectively, for other costs. These restructuring expenses were primarily associated with restructuring actions focused on the reduction of global overhead costs.

The following table summarizes restructuring expense for the three and nine months ended September 30, 2023 and 2022 by reporting segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Automotive	$	852	$	6	$	2,222	$	561
Medical		—		—		—		—
Corporate		247		—		1,190		—
Total	$	1,099	$	6	$	3,412	$	561

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, 2023:


	Employee Separation Costs			Other Related Costs			Total
Balance at December 31, 2022	$	588		$	—		$	588
Additions, charged to restructuring expenses		1,206			63			1,269
Cash payments		—			(63	)		(63	)
Currency translation		16			—			16
Balance at March 31, 2023	$	1,810		$	—		$	1,810
Additions, charged to restructuring expenses		337			707			1,044
Cash payments		(565	)		(707	)		(1,272	)
Currency translation		6			—			6
Balance at June 30, 2023	$	1,588		$	—		$	1,588
Additions, charged to restructuring expenses		1,099			—			1,099
Cash payments		(728	)		—			(728	)
Currency translation		(21	)		—			(21	)
Balance at September 30, 2023	$	1,938		$	—		$	1,938

On December 31, 2022, the Company approved a plan to exit its non-automotive electronics business to strengthen the Company’s core business and focus its resources and equipment with businesses and investments that are more strategic and profitable. The Company will continue to sell certain non-automotive electronics products until the exit is complete. During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $9,378, $5,601 and $690 for write downs of inventory, intangible assets and property and equipment, respectively, within the Automotive segment.

During the three and nine months ended September 30, 2023, the Company recorded non-cash impairment charges of $3,426 and $5,489, respectively, for the write down of inventory within the Automotive segment. These charges were recorded in Cost of sales.

The Company is no longer pursuing a sale of the business and intends to wind-down the operations of the business by the end of 2023, subject to discussions with customers and suppliers.

During the three months ended June 30, 2023, the Company determined that there were impairment indicators for its Medical reporting unit and conducted an impairment analysis, following which the Company concluded that $19,509 of goodwill was impaired. Such non-cash impairment charge was recorded in Impairment of goodwill. See Note 5 for additional information about the goodwill impairment analysis.