Company: SSUP
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034599
Chunk: 105

Company: SUPERIOR INDUSTRIES INTERNATIONAL INC
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 105
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 at an appellate hearing, the Company has concluded that an adverse judgment is now probable. Accordingly, the Company has recognized a provision of $1.5 million which represents the low end of the estimated range of the potential loss. The remaining potential loss is immaterial.

NOTE 18 - RESTRUCTURING The Company initiates restructuring activities to execute management’s strategy, such as gaining operational efficiencies and achieving net cost reductions. Restructuring charges primarily consist of employee severance costs. During 2024, the Company initiated a program to reduce its global workforce to better align its cost structure with the forecasted light vehicle industry volumes. During the year ended December 31, 2024, the Company recognized net restructuring charges of $7.0 million. 

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During 2023, the Company initiated a program to reduce its global workforce to better align the cost structure with lower automotive industry production levels. During the year ended December 31, 2023, the Company recognized net restructuring charges of $8.1 million. In January 2025, the Company recognized restructuring charges of $2.1 million related to cash severance costs under an approved restructuring plan. The changes in the restructuring reserve balance for the years ended December 31, 2024 and 2023 were as follows:  

        Year Ended December 31,
         
        2024

        2023

        Balance at beginning of period
         
        $
        3,187

        $
        —

        Provision (1)

        7,020

        8,098

        Cash payment

        (4,953
        )

        (2,841
        )

        SPG deconsolidation

        —

        (1,802
        )

        Foreign exchange

        (102
        )

        (268
        )

        Balance at end of period
         
        $
        5,152

        $
        3,187

      (1) Provision is net of revisions to previous estimates.

NOTE 19 – DECONSOLIDATION OF SUBSIDIARYOn August 31, 2023, the Company’s then-owned subsidiary Superior Industries Production Germany GmbH (“SPG”) filed voluntary petitions for preliminary insolvency proceedings (i.e., equivalent to Chapter 11 under the U.S. Bankruptcy Code). Effective August 31, 2023, the Company ceased control of SPG and deconsolidated the subsidiary; therefore, it is no longer included in the