Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 84

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 closure or consolidation of facilities throughout the world and the reorganization of its operating structure.In May 2024, the Board of Directors of the Company approved a restructuring plan that eliminated approximately 400 salaried, contract and open positions based on the Company’s new product line organizational structure and current and anticipated market demands. The restructuring effort aimed to further improve and maximize the Company’s operational efficiency by streamlining business practices and deployed resources, and improving the organization’s overall cost structure.The Company recognized approximately $17,000 of restructuring expenses related to this plan in 2024 and does not expect to recognize significant additional expenses related to this plan in 2025. Cash expenditures include severance and other related costs directly attributable to the restructuring activities which were paid in 2024 and continue to be paid to a minor extent in 2025. The restructuring activities are anticipated to generate annualized savings of approximately $40,000 to $45,000.The Company’s restructuring charges consist of severance, retention and outplacement services, and severance-related postemployment benefits (collectively, “employee separation costs”), along with other related exit costs and asset impairments related to restructuring activities (collectively, “other exit costs”). Employee separation costs are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy.Restructuring charges by segment were as follows:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Sealing Systems$2,735 $10,526 $4,256 $11,174 Fluid Handling Systems79 2,500 533 2,825 Corporate and other38 4,755 174 4,915 Total$2,852 $17,781 $4,963 $18,914 

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(Unaudited)(Dollar amounts in thousands except per share and share amounts)

Restructuring activity for all restructuring initiatives for the six months ended June 30, 2025 was as follows:Employee Separation CostsOther Exit CostsTotalBalance as of December 31, 2024$15,057 $4,945 $20,002 Expense1,226 3,737 4,963 Cash payments(7,211)(6,703)(13,914)Foreign exchange translation and other1,006 620 1,626 Balance as of June 30