Cost Reduction and Manufacturing Capacity Rationalization

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Cost Reduction and Manufacturing Capacity Rationalization

Cost Reduction and Manufacturing Capacity Rationalization

During 2019, the Company began implementing cost reduction and manufacturing capacity rationalization initiatives (the "Restructuring Initiatives") in response to declines in end market volumes. Furthermore, the Company is implementing additional cost reduction initiatives and is considering further manufacturing capacity rationalization initiatives in response to the COVID-19 pandemic. These actions were initiated in 2019 and are expected to continue through 2020 and into 2021. The Restructuring Initiatives consist primarily of headcount reductions in each segment and at corporate, as well as other costs associated with transfer of production and subsequent closure of facilities.

Total pre-tax costs associated with the Restructuring Initiatives are estimated to be $5.0 million to $7.0 million and lowered operating costs beginning in the first quarter of 2020.

The changes in accrued restructuring balances are as follows:

	Electrical Systems			Global Seating			Corporate/ Other			Total
BALANCE - December 31, 2019	$	1,276		$	102		$	947		$	2,325
New Charges	—			131			40			171
Payments and Other Adjustments	(848		)	(196		)	(248		)	(1,292		)
BALANCE - March 31, 2020	$	428		$	37		$	739		$	1,204

Approximately $0.1 million in employee costs were incurred in the three months ended March 31, 2020 in the Global Seating Segment and is included in cost of revenues.