Cost Reduction and Manufacturing Capacity Rationalization

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Cost Reduction and Manufacturing Capacity Rationalization

During the quarter ended December 31, 2023, management approved restructuring programs to align the Company’s cost structure to support margin expansion. The programs include workforce reductions and footprint optimization across segments. We incurred $1.1 million expense during the year ended December 31, 2023 related to this program and expect the cost to be between $3.0 million to $3.5 million for the entire program.

The changes in accrued restructuring balances are as follows:


	Vehicle Solutions		Electrical Systems		Aftermarket & Accessories		Industrial Automation		Corporate/Other		Total
December 31, 2022	(5)		—		—		458		—		453
New charges	809		8		—		486		983		2,286
Payments and other adjustments	(676)		(8)		—		(944)		—		(1,628)
December 31, 2023	$	128	$	—	$	—	$	—	$	983	$	1,111


	Vehicle Solutions		Electrical Systems		Aftermarket & Accessories		Industrial Automation		Corporate/Other		Total
December 31, 2021	230		417		—		—		(161)		486
New charges	751		674		1,909		1,725		306		5,365
Payments and other adjustments	(986)		(1,091)		(1,909)		(1,267)		(145)		(5,398)
December 31, 2022	$	(5)	$	—	$	—	$	458	$	—	$	453

Of the $2.3 million costs incurred in the twelve months ended December 31, 2023, $2.0 million primarily related to headcount reductions and $0.3 million related to facility exit and other costs. For the twelve months ended December 31, 2023, the Vehicle Solutions segment had new charges of $0.8 million related to headcount. The Industrial Automation segment had new charges of $0.2 million and $0.3 million related to headcount and facilities, respectively. Corporate had a new charge of $1.0 million related to headcount. Of the $2.3 million costs incurred, $1.3 million was recorded in cost of revenues and $1.0 million was recorded in selling, general and administrative expenses.

Of the $5.4 million costs incurred in the twelve months ended December 31, 2022, $2.5 million related to headcount reductions and $2.8 million related to facility exit and other costs. For the twelve months ended December 31, 2022, Vehicle Solutions segment had new charges of $0.5 million and $0.3 million related to headcount and facilities, respectively. The Electrical Systems segment had a new charges of $0.7 million related to headcount. The Aftermarket & Accessories segment had new charges of $0.6 million and $1.3 million related to headcount and facilities respectively. The Industrial Automation segment had new charges of $0.5 million and $1.2 million related to headcount and facilities, respectively. Corporate had a new charge of $0.3 million related to headcount. Of the $5.4 million costs incurred, $4.0 million was recorded in cost of revenues and $1.4 million was recorded in selling, general and administrative expenses.