Restructuring Charges and Other Costs

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Charges and Other Costs

Note 12 – Restructuring Charges and Other Costs

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 Company’s restructuring process entails moving production between facilities, reducing staff levels, realigning business processes, reorganizing management and other activities.

During the three months ended March 31, 2024, the Company recognized $3.3 million of restructuring charges, which primarily related to capacity and workforce reductions at its sites in the Americas.

During the three months ended March 31, 2023, the Company recognized $1.4 million of restructuring charges, which primarily related to the previously announced closures of its sites in Moorpark, California and other smaller activities involving capacity and workforce reductions at other facilities. The operations at the Moorpark, California facility ceased as of March 31, 2023 and the related restructuring activity was substantially completed as of December 31, 2023.

The components of restructuring charges were as follows:

	Three Months Ended March 31, 2024
(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	2,617	$	371	$	—	$	2,988
Lease facility costs		—		—		—		—
Other exit costs		355		—		—		355
Total restructuring charges	$	2,972	$	371	$	—	$	3,343

The changes in the Company’s accrued restructuring costs were as follows:

(in thousands)	Balances as of December 31, 2023		Restructuring Charges		Cash Payments			Non-Cash Activity		Balances as of March 31, 2024
Severance	$	35	$	2,988	$	(3,023	)	$	—	$	—
Lease facility costs		9		—		(1	)		—		8
Other exit costs		81		355		(436	)		—		—
Total accrued restructuring costs	$	125	$	3,343	$	(3,460	)	$	—	$	8