Restructuring Activities

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Summary of 2022 Restructuring Plan

In April 2022, management approved and commenced a restructuring plan that will better position us for stronger performance. The restructuring plan will mainly reduce headcount and consolidate facilities. As a result of this restructuring plan, we analyzed the need to write-down inventory and impair long-lived assets, including operating lease right-of-use assets. During the year ended December 31, 2022, we recorded total charges of $6.7 million. As of December 31, 2022, we estimate the remaining amount of charges related to this initiative will be $12.0 million to $16.0 million in total pre-tax restructuring charges during 2023. Of these charges, we estimate $9.0 million to $12.0 million to be cash payments for employee separation and other facility consolidation related expenses, and $3.0 million to $4.0 million to be non-cash charges for impairment of long-lived assets.

In the Electronics Systems segment, we recorded $3.5 million and $0.3 million during the year ended December 31, 2022, for severance and benefits that were classified as restructuring charges and accelerated depreciation of property and equipment that was classified as restructuring charges, respectively.

In the Structural Systems segment, we recorded $0.5 million, $1.6 million, $0.5 million, and $0.3 million during the year ended December 31, 2022 for inventory write down that was classified as cost of sales, severance and benefits that were classified as restructuring charges, accelerated depreciation of property and equipment that was classified as restructuring charges, and impairment of property and equipment that was classified as restructuring charges, respectively.

Our restructuring activities for 2022 were as follows (in thousands):

	December 31, 2021		2022								December 31, 2022
	Balance		Charges		Cash Payments		Non-Cash Payments		Change in Estimates		Balance
Severance and benefits	$	—	$	5,076	$	(2,277)	$	—	$	—	$	2,799
Property and equipment accelerated depreciation due to restructuring	—		778		—		(778)		—		—
Property and equipment impairment due to restructuring	—		304		—		(304)		—		—
Inventory write down	—		528		—		(528)		—		—
Ending balance	$	—	$	6,686	$	(2,277)	$	(1,610)	$	—	$	2,799

The restructuring activities accrual for severance and benefits of $2.8 million as of December 31, 2022 was included as part of accrued and other liabilities.