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Severance, Restructuring, and Acquisition Integration Activities | 9 Months Ended
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Oct. 03, 2021
Restructuring and Related Activities [Abstract] |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Cost Reduction Program We have executed a cost reduction program to streamline the organizational structure and invest in technology to drive productivity. We recognized $0.0 million and $3.5 million of severance and other restructuring costs for this program during the three and nine months ended October 3, 2021, respectively, and $0.2 million and $3.2 million during the three and nine months ended September 27, 2020, respectively. These costs were incurred by both the Enterprise Solutions and Industrial Solutions segments. The cost reduction program is substantially complete and has delivered a reduction in selling, general, and administrative expenses of approximately $60 million on an annual basis. We expect to recognize costs of approximately $5 million for this program during the fourth quarter of 2021. Acquisition Integration Program We are integrating our recent acquisitions such as OTN Systems, 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 $0.8 million and $3.2 million of severance and other restructuring costs for this program during the three and nine months ended October 3, 2021, respectively. We recognized $0.9 million and $4.0 million of severance and other restructuring costs for this program during the three and nine months ended September 27, 2020, respectively. These costs were incurred by both the Enterprise Solutions and Industrial Solutions segments. We do not expect to incur significant incremental costs 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 nine months ended October 3, 2021 and September 27, 2020:
|  | Severance |  | Other Restructuring and Integration Costs |  | Total Costs
Three Months Ended October 3, 2021 |  | (In thousands)
Enterprise Solutions |  | $ | (77) |  |  | $ | 3,458 |  |  | $ | 3,381 |
Industrial Solutions |  | (51) |  |  | 998 |  |  | 947 |
Total |  | $ | (128) |  |  | $ | 4,456 |  |  | $ | 4,328 |
Three Months Ended September 27, 2020 |  |  |  |  |  |
Enterprise Solutions |  | $ | 327 |  |  | $ | 1,010 |  |  | $ | 1,337 |
Industrial Solutions |  | 314 |  |  | (294) |  |  | 20 |
Total |  | $ | 641 |  |  | $ | 716 |  |  | $ | 1,357 |
Nine Months Ended October 3, 2021 |  |  |  |  |  |
Enterprise Solutions |  | $ | 1,031 |  |  | $ | 6,725 |  |  | $ | 7,756 |
Industrial Solutions |  | 1,651 |  |  | 3,132 |  |  | 4,783 |
Total |  | $ | 2,682 |  |  | $ | 9,857 |  |  | $ | 12,539 |
Nine Months Ended September 27, 2020 |  |  |  |  |  |
Enterprise Solutions |  | $ | 1,162 |  |  | $ | 5,148 |  |  | $ | 6,310 |
Industrial Solutions |  | 1,132 |  |  | 2,006 |  |  | 3,138 |
Total |  | $ | 2,294 |  |  | $ | 7,154 |  |  | $ | 9,448 |
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 |  | Nine Months Ended |  |
|  | October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |  |  |  |
|  | (In thousands)
Cost of sales |  | $ | 2,943 |  |  | $ | 85 |  |  | $ | 4,306 |  |  | $ | 222 |  |  |  |  |
Selling, general and administrative expenses |  | 1,385 |  |  | 1,272 |  |  | 8,233 |  |  | 9,226 |  |  |  |  |
Total |  | $ | 4,328 |  |  | $ | 1,357 |  |  | $ | 12,539 |  |  | $ | 9,448 |  |  |  |  |
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 nine months ended October 3, 2021 and September 27, 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 |
New charges |  | 63 |  |  | 2,060 |
Cash payments |  | (941) |  |  | (3,968) |
Foreign currency translation |  | (2) |  |  | (156) |
Other adjustments |  | (197) |  |  | (1,541) |
Balance at the end of Q3 |  | $ | 5,691 |  |  | $ | 8,093 |
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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