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Restructuring | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring | 21. RESTRUCTURING During the fourth quarter of 2022, the Company initiated a restructuring program designed to optimize the assets and business processes, and information technology systems of the Company in relation to the Business Combination with Adtran Networks. The restructuring program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions, including human capital resources and combining sourcing and production costs. This restructuring program is expected to be completed in late 2024. In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of a subsidiary's office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020. This plan was completed in 2021 and all amounts were paid in 2022. During the three and nine months ended September 30, 2023, we recognized a certain write down of inventory of $21.0 million due to a restructuring discontinuation of certain product lines within our Network Solutions segment. There was no write down of inventory during the three and nine months ended September 30, 2022. See Note 7, Inventory, for additional information regarding the write down of inventory. A reconciliation of the beginning and ending restructuring liabilities, which is included in accrued wages and benefits in the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, is as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
(In thousands) |  | September 30, 2023 |  |  | September 30, 2023 |
Balance at beginning of period |  | $ | 6,452 |  |  | $ | 159 |
Plus: Amounts charged to cost and expense |  |  | 3,830 |  |  |  | 12,135 |
Less: Amounts paid |  |  | (4,729 | ) |  |  | (6,741 | )
Balance as of September 30, 2023 |  | $ | 5,553 |  |  | $ | 5,553 |
|  | For the Year Ended |
(In thousands) |  | December 31, 2022 |
Balance as of December 31, 2021 |  | $ | 1,514 |
Plus: Amounts charged to cost and expense |  |  | 1,629 |
Less: Amounts paid |  |  | (2,984 | )
Balance as of December 31, 2022 |  | $ | 159 |
Restructuring expenses included in the Condensed Consolidated Statements of Loss are for the three and nine months ended September 30, 2023 and 2022:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Network Solutions - Cost of revenue |  | $ | 611 |  |  | $ | — |  |  | $ | 669 |  |  | $ | — |
Network Solutions - Inventory write down |  |  | 21,043 |  |  |  | — |  |  |  | 21,043 |  |  |  | — |
Services & Support - Cost of revenue |  |  | (24 | ) |  |  | — |  |  |  | (6 | ) |  |  | — |
Cost of revenue |  | $ | 21,630 |  |  | $ | — |  |  | $ | 21,706 |  |  | $ | — |
Selling, general and administrative expenses |  |  | 3,387 |  |  |  | — |  |  |  | 6,960 |  |  |  | 2 |
Research and development expenses |  |  | (144 | ) |  |  | — |  |  |  | 4,512 |  |  |  | — |
Total restructuring expenses |  | $ | 24,873 |  |  | $ | — |  |  | $ | 33,178 |  |  | $ | 2 |
The following table represents the components of restructuring expenses by geographic area for the three and nine months ended September 30, 2023 and 2022:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 22,598 |  |  | $ | — |  |  | $ | 25,217 |  |  | $ | 2 |
International |  |  | 2,275 |  |  |  | — |  |  |  | 7,961 |  |  |  | — |
Total restructuring expenses |  | $ | 24,873 |  |  | $ | — |  |  | $ | 33,178 |  |  | $ | 2 |

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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