Restructuring, Asset Impairments and Other Charges, net

12 Months Ended

Dec. 31, 2019

Restructuring, Asset Impairments and Other, net

Note 7: Restructuring, Asset Impairments and Other Charges, net

Summarized activity included in the “Restructuring, asset impairments and other charges, net” caption on the Company's Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):


	Restructuring		Asset Impairments (1)		Other (2)		Total
Year Ended December 31, 2019
General workforce reduction	$	8.4	$	—	$	—	$	8.4
Post-Quantenna acquisition restructuring	15.7		—		—		15.7
Other	0.8		3.4		0.4		4.6
Total	$	24.9	$	3.4	$	0.4	$	28.7
Year Ended December 31, 2018
Other	$	3.9	$	4.6	$	(4.2)	$	4.3
Total	$	3.9	$	4.6	$	(4.2)	$	4.3
Year Ended December 31, 2017
Post-Fairchild acquisition restructuring costs	$	9.7	$	—	$	—	$	9.7
Manufacturing relocation	(2.1)		—		—		(2.1)
Former System Solutions Group segment voluntary workforce reduction	2.2		—		—		2.2
Other	0.1		7.3		3.6		11.0
Total	$	9.9	$	7.3	$	3.6	$	20.8

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(1) Includes, among others, impairment charges for ROU assets of $2.5 million, asset impairment charges of $4.6 million, and held-for-sale asset impairment charges of $7.3 million for the years ended December 31, 2019, 2018 and 2017, respectively.

(2) Includes gain on sale of certain held-for-sale assets for the year ended December 31, 2018 and charges related to other facility closures and asset disposal activities for the year ended December 31, 2017.

Summary of changes in accrued restructuring charges as follows (in millions):


	Estimated employee separation charges		Estimated costs to exit		Total
Balance as of December 31, 2017	$	1.9	$	0.2	$	2.1
Charges	3.9		—		3.9
Usage	(5.5)		—		(5.5)
Balance as of December 31, 2018	$	0.3	$	0.2	$	0.5
Charges	24.9		—		24.9
Usage	(25.1)		(0.1)		(25.2)
Balance as of December 31, 2019	$	0.1	$	0.1	$	0.2

General workforce reduction

During the first quarter of 2019, the Company approved and began to implement certain restructuring actions aimed at cost savings, primarily through workforce reductions. As of December 31, 2019, the Company had notified approximately 143 employees of their employment termination, all of whom had exited by December 31, 2019. For the year ended December 31, 2019, the expense for this program amounted to $8.4 million, all of which was paid as of December 31, 2019.

The Company has initiated the next phase of this program during the first quarter of 2020. Approximately 100 employees were notified of their employment termination, most of whom are expected to exit before the end of the first quarter of 2020. Restructuring costs pertaining to this program are expected to be approximately $4.5 million for the first quarter of 2020.

Post-Quantenna acquisition restructuring

Following the acquisition of Quantenna and during the quarter ended June 28, 2019, the Company implemented a cost-reduction plan resulting in the elimination of approximately eight executive positions from Quantenna’s workforce, primarily as a result of redundancies. During the year ended December 31, 2019, the Company terminated an additional ten employees. The total restructuring expense of $15.7 million was attributable to the accelerated vesting of stock awards previously issued by Quantenna, executive retention and other severance benefits. All severance benefits for this program were paid as of December 31, 2019.

The Company did not have any significant restructuring activities during the year ended December 31, 2018.

Activity related to the Company’s significant restructuring programs that were initiated during 2017 was as follows:

Post-Fairchild Acquisition Restructuring Costs

Following the acquisition of Fairchild, the Company approved the implementation of a cost-reduction plan, which eliminated approximately 225 positions from its workforce as a result of redundancies. Restructuring charges of $25.7 million were recorded during the year ended December 31, 2016. During the year ended December 31, 2017, an additional 111 positions were eliminated, totaling 336 pursuant to the plan. As of December 31, 2017, a total of 331 employees had exited, and the remaining five exited during 2018. The restructuring expense attributable to severance and termination benefits was $7.9 million and to other exit costs was $1.8 million for the year ended December 31, 2017. The total expense for this program amounted to $35.4 million and the Company paid $13.4 million and $20.2 million during the years ended December 31, 2017 and 2016, respectively. Accrued severance benefits for this program was $1.8 million as of December 31, 2017, which were paid during the year ended December 31, 2019.

Manufacturing Relocation

During the first quarter of 2016, the Company announced a plan to relocate certain of its manufacturing operations to another existing location. During the first quarter of 2017, the Company made the decision to cancel the plans for relocation and announced all workforce would remain intact. As a result, the accrued balance of $2.1 million was released.

Former System Solutions Group Segment Voluntary Workforce Reduction

During the second quarter of 2017, the Company announced a voluntary resignation program for the former System Solutions Group. A total of 36 employees had signed employee separation agreements as of December 31, 2017 and the related expense for the year was $2.2 million, of which $2.0 million had been paid as of December 31, 2017. The remaining amounts were paid during 2018.