Note 3 - Restructuring and Other Charges

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

( 3 ) RESTRUCTURING AND OTHER CHARGES

EMS Segment Restructuring and Facility Consolidation

On

September 21, 2020,

we notified employees in our Fremont, California facility of a plan to consolidate all manufacturing for our EMS segment into our manufacturing operations located in Mt. Laurel, New Jersey. The consolidation was substantially completed during the

fourth

quarter of

2020

and resulted in the termination of employment for certain employees at the Fremont location. Prior to the consolidation, our interface products were manufactured in the Fremont facility, and our manipulator and docking hardware products were manufactured in the Mt. Laurel facility. The consolidation was undertaken to better serve customers through streamlined operations and reduce the fixed annual operating costs for the EMS segment. A small engineering and sales office will be maintained in northern California.

As a result of the consolidation, we incurred charges for severance and other

one

-time termination benefits, other associated costs, including moving and production start-up costs, and charges related to exiting the facility, including an impairment charge related to the ROU asset for the lease of the Fremont facility, which are more fully discussed in Note

3

to our consolidated financial statements in our

2020

Form

10

-K. During the

first

quarter of

2021,

we incurred

$55

of additional charges associated with finalizing the integration of the manufacturing operations. All of these charges were cash charges. We expect to complete the integration in the

second

quarter of

2021

and expect to incur additional cash charges in the range of

$50

to

$100.

Other Restructuring Actions

During the

first

quarter of

2020,

we recorded cash charges for severance and other

one

-time termination benefits of

$8

related to headcount reductions in our corporate office.

Accrued Restructuring

The liability for accrued restructuring charges is included in other current liabilities on our consolidated balance sheet. Changes in the amount of the liability for accrued restructuring for the

three

months ended

March 31, 2021

is as follows:

Balance - January 1, 2021	$	340
Accruals for other costs associated with the EMS segment facility consolidation		55
Cash payments		(138	)
Balance - March 31, 2021	$	257