Restructuring, Asset Impairments and Other Charges, net

12 Months Ended

Dec. 31, 2020

Restructuring, Asset Impairments and Other, net

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

Details of restructuring, asset impairments and other charges, net are as follows (in millions):


	Restructuring		Asset Impairments (1)		Other		Total
Year Ended December 31, 2020
Voluntary separation program	$	27.5	$	—	$	—	$	27.5
2020 Involuntary separation program	11.8		—		—		11.8
General workforce reduction	12.3		—		—		12.3
Other	—		17.5		(3.9)		13.6
Total	$	51.6	$	17.5	$	(3.9)	$	65.2
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

_______________________

(1) The asset impairment charges recorded during the year ended December 31, 2020 related to a) property, plant and equipment amounting to $9.1 million b) investments in certain entities where the Company does not exert a significant influence amounting to $7.0 million and c) lease right-of-use assets of $1.4 million.

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, 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
Charges	51.6		—		51.6
Usage	(45.5)		(0.1)		(45.6)
Balance as of December 31, 2020	$	6.2	$	—	$	6.2

Year ended December 31, 2020:

Voluntary Separation Program

During the first quarter of 2020, the Company offered the VSP to employees that met certain criteria. Participation was subject to management review and approval. The purpose of the VSP was to allow employees to voluntarily separate employment during a specific time and with enhanced separation compensation and benefits, thereby enabling the Company to optimize its cost structure and progress towards its target financial model. Management approved 243 employees for participation in the VSP during the first quarter, after which the VSP was terminated. The aggregate expense for the VSP amounted to $27.5 million for the 243 employees, all of whom had exited by the end of the second quarter of 2020. All amounts under the VSP have been paid during 2020, and there are no payments remaining as of December 31, 2020.

2020 Involuntary Separation Program

During the second quarter of 2020, the Company implemented the ISP restructuring program. Under the ISP, the Company notified approximately 191 employees of their employment termination with aggregate severance costs and other benefits amounting to $11.8 million. All notified employees have exited during 2020 and an insignificant amount remained accrued as of December 31, 2020. The Company currently does not anticipate additional employee terminations under this program.

General workforce reduction

In addition to the VSP and the ISP, the Company undertook certain general workforce reduction measures during 2020.

During the first three quarters of 2020, the Company notified approximately 153 employees of their employment termination with aggregate severance costs and other benefits amounting $6.2 million. All notified employees have exited during 2020 and an insignificant amount remained accrued as of December 31, 2020.

During the fourth quarter of 2020, the Company notified approximately 106 employees of their employment termination with aggregate severance costs and other benefits amounting to approximately $6.1 million, of which 67 employees have exited as of the end of the year. As of December 31, 2020, $5.3 million remained accrued and is expected to be paid during the first quarter of 2021.

Year ended December 31, 2019:

General workforce reductions and post-Quantenna acquisition restructuring

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, 2020, the expense for this program amounted to $8.4 million, all of which was paid as of December 31, 2019.

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.

Year ended December 31, 2018:

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

The Company continues to evaluate employee positions and locations for potential efficiencies and may incur additional charges in the future.