Cost Reduction and Manufacturing Capacity Rationalization

9 Months Ended

Sep. 30, 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, in 2020 the Company began implementing additional cost reduction initiatives and further manufacturing capacity rationalization initiatives in response to the COVID-19 pandemic ("the 2020 Initiatives"). These actions are expected to continue through 2020 and into 2021. The Restructuring Initiatives and 2020 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, and expansion of production footprint to manufacture warehouse automation subsystems.

The changes in accrued restructuring balances are as follows: 

	Electrical Systems		Global Seating		Corporate/ Other		Total
December 31, 2019	$	1,276	$	102	$	947	$	2,325
New Charges	2,690		1,012		469		4,171
Payments and Other Adjustments	(3,422)		(879)		(1,057)		(5,358)
September 30, 2020	$	544	$	235	$	359	$	1,138

Of the $4.2 million costs incurred in the nine months ended September 30, 2020, $3.3 million primarily related to headcount reductions and $0.9 million related to facility exit and other costs. Of the $4.2 million costs incurred, $3.2 million was recorded in cost of revenues and $1.0 million was recorded in selling, general and administrative expenses.