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Severance, Restructuring, and Acquisition Integration Activities | 6 Months Ended
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Jul. 04, 2021
Restructuring and Related Activities [Abstract] |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Cost Reduction Program 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 $1.2 million and $3.5 million of severance and other restructuring costs for this program during the three and six months ended July 4, 2021, respectively, and $3.5 million and $3.0 million during the three and six months ended June 28, 2020, respectively. These costs were incurred by both the Enterprise Solutions and Industrial Solutions segments. The cost reduction program is expected to deliver an estimated $60 million reduction in selling, general, and administrative expenses on an annual basis. We expect to incur incremental costs of approximately $5 million for this program in 2021. Acquisition Integration Program We are integrating our recent acquisitions such as OTN, SPC, and Opterna with our existing businesses. The restructuring and integration activities are focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We recognized $0.6 million and $2.4 million of severance and other restructuring costs for this program during the three and six months ended July 4, 2021, respectively. 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. These costs were incurred by both the Enterprise Solutions and Industrial Solutions segments. We expect to incur incremental costs of approximately $2.0 million for this program in 2021. 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 July 4, 2021 and June 28, 2020:
|  | Severance |  | Other Restructuring and Integration Costs |  | Total Costs
Three Months Ended July 4, 2021 |  | (In thousands)
Enterprise Solutions |  | $ | 64 |  |  | $ | 2,396 |  |  | $ | 2,460 |
Industrial Solutions |  | 335 |  |  | 245 |  |  | 580 |
Total |  | $ | 399 |  |  | $ | 2,641 |  |  | $ | 3,040 |
Three Months Ended June 28, 2020 |  |  |  |  |  |
Enterprise Solutions |  | $ | 1,467 |  |  | $ | 956 |  |  | $ | 2,423 |
Industrial Solutions |  | 1,773 |  |  | 276 |  |  | 2,049 |
Total |  | $ | 3,240 |  |  | $ | 1,232 |  |  | $ | 4,472 |
Six Months Ended July 4, 2021 |  |  |  |  |  |
Enterprise Solutions |  | $ | 1,108 |  |  | $ | 3,267 |  |  | $ | 4,375 |
Industrial Solutions |  | 1,702 |  |  | 2,134 |  |  | 3,836 |
Total |  | $ | 2,810 |  |  | $ | 5,401 |  |  | $ | 8,211 |
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 |
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 |  |
|  | July 4, 2021 |  | June 28, 2020 |  | July 4, 2021 |  | June 28, 2020 |  |  |  |
|  | (In Thousands)
Cost of sales |  | $ | 1,103 |  |  | $ | 92 |  |  | $ | 1,363 |  |  | $ | 137 |  |  |  |  |
Selling, general and administrative expenses |  | 1,937 |  |  | 4,380 |  |  | 6,848 |  |  | 7,954 |  |  |  |  |
Total |  | $ | 3,040 |  |  | $ | 4,472 |  |  | $ | 8,211 |  |  | $ | 8,091 |  |  |  |  |
Accrued Severance The table below summarizes severance activity, included in accrued liabilities, for the Cost Reduction Program and the Acquisition Integration Program discussed above for the three and six months ended July 4, 2021 and June 28, 2020, respectively.
|  | 2021 |  | 2020
|  | (In thousands)
Beginning year balance |  | $ | 7,085 |  |  | $ | 19,575 |
New charges |  | 2,060 |  |  | 2,529 |
Cash payments |  | (1,798) |  |  | (4,483) |
Foreign currency translation |  | 49 |  |  | (89) |
Other adjustments |  | — |  |  | (4,147) |
Balance at the end of Q1 |  | 7,396 |  |  | 13,385 |
New charges |  | 458 |  |  | 4,660 |
Cash payments |  | (1,023) |  |  | (4,795) |
Foreign currency translation |  | (4) |  |  | (132) |
Other adjustments |  | (59) |  |  | (1,420) |
Balance at the end of Q2 |  | $ | 6,768 |  |  | $ | 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.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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