| Business Realignment |
Business Realignment The Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs that are referred to as business realignment charges. Business realignment charges incurred by reportable segment were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Electronics (A) | $ | 16 | | | $ | 1,416 | | | $ | 400 | | | $ | 2,789 | | | | | | | | | | Unallocated Corporate (B) | — | | | — | | | — | | | 1,077 | | | Total business realignment charges | $ | 16 | | | $ | 1,416 | | | $ | 400 | | | $ | 3,866 | |
_____________________________________ | | | | | | | (A) | Severance costs for the three and six months ended June 30, 2026 related to SG&A were $16 and $400, and related to severance costs in Europe. Severance costs for the three months ended June 30, 2025 related to SG&A and D&D were $34 and $1,382, respectively. Severance costs for the six months ended June 30, 2025 related to COGS, SG&A and D&D were $1,073, $140 and $1,576, respectively. The majority of the 2025 business realignment costs related to operational efficiency initiatives at our Juarez facility. |
| | | | | | | (B) | Severance related costs for the six months ended June 30, 2025 related to SG&A were $1,077 for executive separation costs. |
Business realignment charges incurred, classified by statement of operations line item were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Cost of goods sold | $ | — | | | $ | — | | | $ | — | | | $ | 1,073 | | | Selling, general and administrative | 16 | | | 34 | | | 400 | | | 1,217 | | | Design and development | — | | | 1,382 | | | — | | | 1,576 | | | Total business realignment charges | $ | 16 | | | $ | 1,416 | | | $ | 400 | | | $ | 3,866 | |
Reconciliations of the beginning and ending liability balances related to business realignment were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Utilization | | | | Accrual as of January 1, 2026 | | 2026 Charge to Expense | | Cash | | Non-Cash | | Accrual as of
June 30, 2026 | Employee termination costs | $ | 568 | | | $ | 400 | | | $ | (505) | | | $ | — | | | $ | 463 | | | Total | $ | 568 | | | $ | 400 | | | $ | (505) | | | $ | — | | | $ | 463 | | | | | | | | | | | | | | | | | Utilization | | | | Accrual as of January 1, 2025 | | 2025 Charge to Expense | | Cash | | Non-Cash | | Accrual as of
June 30, 2025 | Employee termination costs | $ | 411 | | | $ | 3,866 | | | $ | (3,457) | | | $ | — | | | $ | 820 | | | Total | $ | 411 | | | $ | 3,866 | | | $ | (3,457) | | | $ | — | | | $ | 820 | |
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