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Severance, Restructuring, and Acquisition Integration Activities | 12 Months Ended
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Dec. 31, 2017
Restructuring and Related Activities [Abstract] |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Industrial Manufacturing Footprint Program: 2016-2017 In the first quarter of 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed in 2018. We recognized $30.6 million and $17.8 million of severance and other restructuring costs for this program during 2017 and 2016, respectively. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms. To date, we have incurred a total of $48.4 million in severance and other restructuring costs, including manufacturing inefficiencies for this program. We expect to incur approximately $6 million of additional severance and other restructuring costs for this program in 2018. We expect that the program will generate approximately $13 million of savings on an annualized basis, which we began to realize in the third quarter of 2017. Industrial and Network Solutions Restructuring Program: 2015-2016 Both our Industrial Solutions and Network Solutions segments were negatively impacted by a decline in sales volume in 2015. At such time, global demand for industrial products was negatively impacted by the strengthened U.S. dollar and lower energy prices. As a result, our customers reduced their capital spending. In response to these industrial market conditions, we began to execute a restructuring program in the fourth fiscal quarter of 2015 to reduce our cost structure. We recognized approximately $9.7 million and $3.3 million of severance and other restructuring costs for this program during 2016 and 2015, respectively. Most of these costs were incurred by our Network Solutions segment. We did not incur any severance and other restructuring costs for this program in 2017. We incurred a total of $13 million in severance and other restructuring costs for this program. We expected the restructuring program to generate approximately $18 million of savings on an annualized basis, and we are substantially realizing such benefits. Grass Valley Restructuring Program: 2015-2016 Our Broadcast Solutions segment’s Grass Valley brand was negatively impacted by a decline in global demand of broadcast technology infrastructure products beginning in 2015. Outside of the U.S., demand for these products was impacted by the relative price increase of products due to the strengthened U.S. dollar as well as the impact of weaker economic conditions which have resulted in lower capital spending. Within the U.S., demand for these products was impacted by deferred capital spending. We believe broadcast customers have deferred their capital spending as they navigate through a number of important industry transitions and a changing media landscape. In response to these broadcast market conditions, we began to execute a restructuring program beginning in the third fiscal quarter of 2015 to reduce our cost structure. We recognized approximately $8.7 million and $25.4 million of severance and other restructuring costs for this program during 2016 and 2015, respectively. We did not incur any severance and other restructuring costs for this program in 2017. We incurred a total of $34.1 million in severance and other restructuring costs for this program. We expected the restructuring program to generate approximately $30 million of savings on an annualized basis, and we are substantially realizing such benefits. Productivity Improvement Program and Acquisition Integration: 2014-2016 In 2014, we began a productivity improvement program and the integration of our acquisition of Grass Valley. The productivity improvement program focused on improving the productivity of our sales, marketing, finance, and human resources functions relative to our peers. The majority of the costs for the productivity improvement program related to the Industrial Solutions, Enterprise Solutions, and Network Solutions segments. The restructuring and integration activities related to our acquisition of Grass Valley focused on achieving desired cost savings by consolidating existing and acquired operating facilities and other support functions. The Grass Valley costs related to our Broadcast Solutions segment. In 2015, we recorded $18.5 million of such costs related to these two programs, as well as other cost reduction actions and the integration of our acquisitions of ProSoft, Coast, and Tripwire. In 2016, we recognized $2.6 million of costs, primarily related to our 2016 acquisition of M2FX. We did not incur any severance and other restructuring costs for this program in 2017. We expected the productivity improvement program to reduce our operating expenses by approximately $18 million on an annualized basis, and we are substantially realizing such benefits. The following tables summarize the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities:
| Severance |  | Other Restructuring and Integration Costs |  | Total Costs
|  |  | (In thousands) |  |
Year Ended December 31, 2017 |  |  |  |  |
Broadcast Solutions | $ | 893 |  |  | $ | 4,639 |  |  | $ | 5,532 |
Enterprise Solutions | 3,642 |  |  | 19,869 |  |  | 23,511 |
Industrial Solutions | 886 |  |  | 11,386 |  |  | 12,272 |
Network Solutions | (210 | ) |  | 1,685 |  |  | 1,475 |
Total | $ | 5,211 |  |  | $ | 37,579 |  |  | $ | 42,790 |
Year Ended December 31, 2016 |  |  |  |  |
Broadcast Solutions | $ | (116 | ) |  | $ | 10,530 |  |  | $ | 10,414 |
Enterprise Solutions | 636 |  |  | 11,326 |  |  | 11,962 |
Industrial Solutions | 2,828 |  |  | 7,095 |  |  | 9,923 |
Network Solutions | 3,734 |  |  | 2,737 |  |  | 6,471 |
Total | $ | 7,082 |  |  | $ | 31,688 |  |  | $ | 38,770 |
Year Ended December 31, 2015 |  |  |  |  |
Broadcast Solutions | $ | 16,694 |  |  | $ | 22,384 |  |  | $ | 39,078 |
Enterprise Solutions | (186 | ) |  | 909 |  |  | 723 |
Industrial Solutions | 3,309 |  |  | 2,919 |  |  | 6,228 |
Network Solutions | (716 | ) |  | 1,857 |  |  | 1,141 |
Total | $ | 19,101 |  |  | $ | 28,069 |  |  | $ | 47,170 |
The other restructuring and integration costs in 2017 and 2016 primarily consisted of equipment transfers, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The other restructuring and integration costs in 2016 also included non-cash pension settlement charges due in part to our restructuring activities. The other restructuring and integration costs in 2015 primarily consisted of costs of integrating manufacturing operations, such as relocating inventory on a global basis, retention bonuses, relocation, travel, reserves for inventory obsolescence as a result of product line integration, costs to consolidate operating and support facilities, and other costs. The majority of the other restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days. Of the total severance, restructuring, and acquisition integration costs recognized during 2017, $32.6 million, $10.0 million, and $0.2 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance, restructuring, and acquisition integration costs recognized during 2016, $12.3 million, $25.7 million, and $0.8 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance and other restructuring costs recognized during 2015, $9.4 million, $31.7 million, and $6.1 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. There were no significant severance accruals balances as of December 31, 2017 or 2016.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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