Restructuring Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Note 17—Restructuring Charges

The Company has undertaken initiatives to restructure its business operations to improve utilization and realize cost savings. These initiatives have included changing the number and location of production facilities, largely to align capacity and infrastructure with current and anticipated customer demand. This alignment includes transferring programs from higher cost geographies to lower cost geographies. The process of restructuring entails moving production between facilities, reducing staff levels, realigning our business processes, reorganizing our management and other activities.

The Company recognized $5.7 million of restructuring charges during the year ended December 31, 2022 primarily related to the previously announced closures of our sites in San Jose, California, Angleton, Texas, and Moorpark, California in the Americas, and other smaller activities involving capacity reductions and reductions in workforce in certain facilities across various regions. San Jose, California operations have ceased and all restructuring activity was complete as of March 31, 2022. Angleton, Texas operations have ceased and all restructuring activity is complete as of June 30, 2022 upon the disposition of the facility. Moorpark, California operations are expected to cease at the end of March 31, 2023 with restructuring activity estimated to be completed shortly thereafter.

The following table summarizes the 2022 activity in accrued restructuring, which is included in accrued liabilities in the condensed consolidated balance sheets, related to various restructuring activities initiated prior to December 31, 2022:


	Balance as of										Foreign		Balance as of
	December 31,		Restructuring		Cash			Non-Cash			Exchange		December 31,
(in thousands)	2021		Charges		Payment			Activity			Adjustments		2022
Restructuring:
Severance	$	3,257	$	2,428	$	(1,713	)	$	(289	)	$	—	$	3,683
Lease facility costs		17		1,261		(1,261	)		—			—		17
Other exit costs		237		2,021		(2,056	)		(121	)		—		81
Total	$	3,511	$	5,710	$	(5,030	)	$	(410	)	$	—	$	3,781

The components of the restructuring charges during 2022 were as follows:


(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	2,298	$	130	$	—	$	2,428
Lease facility costs		1,261		—		—		1,261
Other exit costs		2,021		—		—		2,021
	$	5,580	$	130	$	—	$	5,710

The Company recognized restructuring charges during 2021 and 2020 primarily related to the closure of facilities in the Americas and capacity reductions in the workforce of certain facilities across various regions in Asia and Europe, respectively.

The following table summarizes the 2021 activity in accrued restructuring, which is included in accrued liabilities in the condensed consolidated balance sheets, related to various restructuring activities initiated prior to December 31, 2021:


	Balance as of										Foreign		Balance as of
	December 31,		Restructuring		Cash			Non-Cash			Exchange		December 31,
(in thousands)	2020		Charges		Payment			Activity			Adjustments		2021
Restructuring:
Severance	$	3,996	$	4,130	$	(4,685	)	$	(184	)	$	—	$	3,257
Lease facility costs		50		2,745		(2,618	)		(160	)		—		17
Other exit costs		408		2,470		(2,252	)		(389	)		—		237
Total	$	4,454	$	9,345	$	(9,555	)	$	(733	)	$	—	$	3,511

The components of the restructuring charges during 2021 were as follows:


(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	4,084	$	46	$	—	$	4,130
Lease facility costs		2,581		164		—		2,745
Other exit costs		2,470		—		—		2,470
	$	9,135	$	210	$	—	$	9,345

The following table summarizes the 2020 activity in accrued restructuring, which is included in accrued liabilities in the condensed consolidated balance sheets, related to various restructuring activities initiated prior to December 31, 2020:


	Balance as of										Foreign		Balance as of
	December 31,		Restructuring		Cash			Non-Cash			Exchange		December 31,
(in thousands)	2019		Charges		Payment			Activity			Adjustments		2020
Restructuring:
Severance	$	3,956	$	7,010	$	(6,666	)	$	(304	)	$	—	$	3,996
Lease facility costs		—		3,716		(2,394	)		(1,272	)		—		50
Other exit costs		—		2,174		(655	)		(1,111	)		—		408
Total	$	3,956	$	12,900	$	(9,715	)	$	(2,687	)	$	—	$	4,454

The components of the restructuring charges during 2020 were as follows:


(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	5,829	$	1,181	$	—	$	7,010
Lease facility costs		3,716		—		—		3,716
Other exit costs		2,088		86		—		2,174
	$	11,633	$	1,267	$	—	$	12,900

Additionally, during the year ended December 31, 2021, the Company made the decision to no longer continue certain manufacturing capabilities in the Americas. In connection with that decision, the Company assessed the facility and equipment assets used in those manufacturing capabilities using valuation information from third parties and recorded $4.4 million of impairment charges as a result of that assessment. The asset impairment charges are included in the restructuring charges and other costs line item on the consolidated statements of income as of December 31, 2021. During the year ended December 31, 2022, the Company completed the

sale of the equipment for $1.3 million and recorded a loss on assets held for sale of $2.0 million included in the restructuring charges and other costs line item on the consolidated statements of income. Additionally, during the year ended December 31, 2022, the Company completed the sale of a building in Angleton, Texas for $4.3 million and recorded a gain on assets held for sale of $2.4 million included in the restructuring charges and other costs line item on the consolidated statements of income. During the year ended December 31, 2020, the Company incurred $5.7 million and $1.0 million in costs related to asset impairments in the Americas and Asia, respectively.

Additionally, during the year ended December 31, 2022, the Company agreed to $3.3 million in legal settlements.