Subsequent Event

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

In April 2023, the Company authorized restructuring actions (“2023 Actions”) focused on manufacturing footprint optimization, including the consolidation of manufacturing sites and optimization of production. The 2023 Actions include the geographic transfer of certain programs within both the Industrial and Aerospace segments and changes in infrastructure to drive improvements and efficiencies in business processes, including the elimination of certain roles across several locations. The pre-tax charges associated with the 2023 Actions are expected to approximate $28,000, with approximately $19,000 of the charges being recorded in 2023 and the residual amount recorded through 2025, all through operating profit. Of the aggregate, approximately $15,000 relates to employee termination costs, primarily severance and other employee related benefits, and are to be paid in cash. The residual charges of $13,000 relate to other associated restructuring costs, with the primary drivers being $2,300 of accelerated depreciation and $7,500 related to the transfer of work. Of this $13,000, approximately $11,000 is payable in cash. Of the aggregate charges, approximately $12,000 and $16,000 relate to the Aerospace and Industrial segments, respectively.

The Company also plans to invest approximately $14,000 in capital expenditures related to the 2023 Actions. The 2023 Actions are expected to be completed throughout multiple periods, with completion in 2025. The Company anticipates annualized cost savings of over $25,000 from the 2023 Actions. The planned capital expenditures relate primarily to the Aerospace segment.