XML 29 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

Severance, Restructuring, and Acquisition Integration Activities | 6 Months Ended
--- | ---
Jun. 28, 2020
Restructuring and Related Activities [Abstract] |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Cost Reduction Program: 2019 During the fourth quarter of 2019, we began a cost reduction program to improve performance and enhance margins by streamlining the organizational structure and investing in technology to drive productivity. We recognized $3.5 million and $3.0 million of severance and other restructuring costs for this program during the three and six months ended June 28, 2020, respectively. The cost reduction program is expected to deliver an estimated $60.0 million reduction in selling, general, and administrative expenses on an annual basis, of which $40.0 million is expected to be realized in 2020, with the full benefit materializing in 2021. We expect to incur incremental costs of approximately $22.0 million for this program. SPC, Opterna and FutureLink Integration Program: 2019 In 2019, we began a restructuring program to integrate SPC, Opterna and FutureLink with our existing businesses. The restructuring and integration activities were focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We recognized $0.9 million and $3.1 million of severance and other restructuring costs for this program during the three and six months ended June 28, 2020, respectively. We recognized $2.5 million of severance and other restructuring costs for this program during the three and six months ended June 30, 2019. These costs were incurred by the Enterprise Solutions segment. We expect to incur incremental costs of approximately $1.5 million for this program. The following table summarizes the costs by segment of the programs described above as well as other immaterial programs and acquisition integration activities during the three and six months ended June 28, 2020 and June 30, 2019:
|  | Severance |  | Other Restructuring and Integration Costs |  | Total Costs
Three Months Ended June 28, 2020 |  | (In thousands) |  |  |  |
Enterprise Solutions |  | $ | 1,467 |  |  | $ | 956 |  |  | $ | 2,423 |
Industrial Solutions |  | 1,773 |  |  | 276 |  |  | 2,049 |
Total |  | $ | 3,240 |  |  | $ | 1,232 |  |  | $ | 4,472 |
Three Months Ended June 30, 2019 |  |  |  |  |  |
Enterprise Solutions |  | $ | — |  |  | $ | 2,519 |  |  | $ | 2,519 |
Industrial Solutions |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | 2,519 |  |  | $ | 2,519 |
Six Months Ended June 28, 2020 |  |  |  |  |  |
Enterprise Solutions |  | $ | 835 |  |  | $ | 4,138 |  |  | $ | 4,973 |
Industrial Solutions |  | 818 |  |  | 2,300 |  |  | 3,118 |
Total |  | $ | 1,653 |  |  | $ | 6,438 |  |  | $ | 8,091 |
Six Months Ended June 30, 2019 |  |  |  |  |  |
Enterprise Solutions |  | $ | — |  |  | $ | 2,519 |  |  | $ | 2,519 |
Industrial Solutions |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | 2,519 |  |  | $ | 2,519 |
The other restructuring and integration costs primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, 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. The following table summarizes the costs of the various programs described above as well as other immaterial programs and acquisition integration activities by financial statement line item in the Condensed Consolidated Statement of Operations:
|  | Three Months Ended |  |  |  | Six Months Ended |  |
|  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
|  | (In Thousands) |  |  |  |  |  |
Cost of sales |  | $ | 92 |  |  | $ | 300 |  |  | $ | 137 |  |  | $ | 300 |
Selling, general and administrative expenses |  | 4,380 |  |  | 2,219 |  |  | 7,954 |  |  | 2,219 |
Total |  | $ | 4,472 |  |  | $ | 2,519 |  |  | $ | 8,091 |  |  | $ | 2,519 |
Accrued Severance The table below sets forth severance activity that occurred for the Cost Reduction Program as well as the SPC, Opterna and FutureLink Integration Program described above. The balances below are included in accrued liabilities (in thousands).
Balance at December 31, 2019 |  | $ | 19,575 |
New charges |  | 2,529 |
Cash payments |  | (4,483) |
Foreign currency translation |  | (89) |
Other adjustments |  | (4,147) |
Balance at March 29, 2020 |  | $ | 13,385 |
New charges |  | 4,660 |
Cash payments |  | (4,795) |
Foreign currency translation |  | (132) |
Other adjustments |  | (1,420) |
Balance at June 28, 2020 |  | $ | 11,698 |
The other adjustments were the result of changes in estimates. We experienced higher than expected voluntary turnover, and as a result, certain approved severance actions were not taken.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration