Restructuring

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Note 5. Restructuring

We initiate restructuring plans to leverage economies of scale, streamline distribution and logistics, and strengthen operational and administrative effectiveness in order to reduce overall costs.

In November 2019, we initiated a reorganization plan (the “2019 Plan”) to streamline our organizational structure in order to address new regulatory requirements, create efficiencies, improve profitability and ensure business continuity. As a result, we incurred restructuring expenses of $4.4 million during the year ended December 31, 2019 and $1.9 million during the year ended December 31, 2020, primarily associated with severance costs for approximately 35 impacted employees. The 2019 Plan was completed during 2020.

Additionally, we ended our Caisson TMVR program effective December 31, 2019 after determining that it was no longer viable to continue to invest in the program. As a result, we recognized restructuring expenses of $3.5 million during the year ended December 31, 2019 and $0.3 million during the year ended December 31, 2020, primarily associated with severance costs for approximately 50 impacted employees. The Caisson TMVR restructuring plan was completed during 2020.

During the fourth quarter of 2020, we initiated a reorganization plan (the “2020 Plan”) to reduce our cost structure. We incurred restructuring expenses of $5.3 million during the year ended December 31, 2020 primarily associated with severance costs for 54 employees, and $9.7 million during 2021, primarily associated with severance costs for 27 additional employees during 2021 under the 2020 Plan and lease abandonment costs.

The following table provides a reconciliation of the beginning and ending balance of the accruals and other reserves recorded in connection with our restructuring plans included within accrued liabilities on the consolidated balance sheet (in thousands):


	Employee Severance and Other Termination Costs		Other		Total
Balance at December 31, 2018	$	10,195	$	3,069	$	13,264
Charges	11,472		782		12,254
Cash payments	(17,570)		(2,451)		(20,021)
Balance at December 31, 2019	4,097		1,400		5,497
Charges	7,571		—		7,571
Cash payments	(5,919)		(854)		(6,773)
Balance at December 31, 2020	5,749		546		6,295
Charges	7,963		1,750		9,713
Cash payments	(12,876)		(2,296)		(15,172)
Balance at December 31, 2021 (1)	$	836	$	—	$	836

(1)Cumulatively, we have recognized a total of $128.8 million in restructuring expense, inclusive of discontinued operations.

The following table presents restructuring expense by reportable segment (in thousands):


	Year Ended December 31,
	2021		2020		2019
Cardiopulmonary	$	2,844	$	1,040	$	1,483
Neuromodulation	1,531		3,223		1,082


Other (1)	5,338		3,308		9,689
Total (2)	$	9,713	$	7,571	$	12,254

(1)Other restructuring expense for the year ended December 31, 2019 included $3.5 million of Caisson restructuring expenses.

(2)Restructuring expense is included within other operating expenses on the consolidated statements of income (loss).