Restructuring and Integration Expenses

3 Months Ended

Mar. 31, 2023

Restructuring and Integration Expenses [Abstract]

Note 4. Restructuring and Integration Expenses

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023, consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2022	$	1,521		$	—		$	1,521
Restructuring and integration costs:
Amounts provided for during 2023 (1)		840			72			912
Cash payments		(321	)		(48	)		(369	)
Foreign currency exchange rate changes		(27	)		—			(27	)
Exit activity liability at March 31, 2023	$	2,013		$	24		$	2,037

(1)	Restructuring and integration expenses incurred during the three months ended March 31, 2023 consist of $0.3 million in our Vehicle Control segment, $0.5 million in our Temperature Control segment and $0.1 million in our Engineered Solutions segment.

Restructuring Costs

Cost Reduction Initiative

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico.

Restructuring expenses related to the Cost Reduction Initiative of approximately $0.9 million were incurred during the three months ended March 31, 2023 consisting of (1) expenses of approximately $0.8 million of employee severance related to our product line relocations, and (2) expenses of approximately $0.1 million related to the relocation of machinery and equipment to our manufacturing facilities in Reynosa, Mexico. Cash payments made of approximately $0.4 million during the three months ended March 31, 2023 consisted primarily of severance payments related to the sales force reduction. Additional restructuring costs related to the initiative, and expected to be incurred, are approximately $1.9 million. We anticipate that the Cost Reduction Initiative will be completed by the end of 2023.