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Restructuring and Acquisition Related Costs
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Acquisition Related Costs

16. Restructuring and Acquisition Related Costs

The following table summarizes restructuring and acquisition related costs recorded in the accompanying consolidated statements of operations (in thousands):

 

Year Ended December 31,

 

 

2023

 

 

2022

 

 

2021

 

2022 restructuring

$

8,961

 

 

$

1,414

 

 

$

—

 

2020 restructuring

 

2,853

 

 

 

2,994

 

 

 

8,133

 

2019 restructuring

 

—

 

 

 

—

 

 

 

208

 

Total restructuring related charges

$

11,814

 

 

$

4,408

 

 

$

8,341

 

Acquisition and related charges

$

1,000

 

 

$

(24

)

 

$

9,679

 

Total restructuring, acquisition and related costs

$

12,814

 

 

$

4,384

 

 

$

18,020

 

2022 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. During the year ended December 31, 2023, the Company recorded $9.0 million in severance, facilities related costs, and other costs in connection with the 2022 restructuring program. As of December 31, 2023, the Company had incurred cumulative costs related to this restructuring program totaling $10.4 million. The 2022 restructuring program was completed in the fourth quarter of 2023.

The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

2022

 

 

December 31, 2023

 

Precision Medicine and Manufacturing

$

1,899

 

$

1,162

 

 

$

3,061

 

Medical Solutions

 

1,188

 

 

56

 

 

 

1,244

 

Robotics and Automation

 

5,043

 

 

196

 

 

 

5,239

 

Unallocated Corporate and Shared Services

 

831

 

 

—

 

 

 

831

 

Total

$

8,961

 

$

1,414

 

 

$

10,375

 

 

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. During the year ended December 31, 2023, the Company recorded $2.9 million in severance, facilities related costs, and other costs in connection with the 2020 restructuring program. As of December 31, 2023, the Company had recorded an aggregate $16.7 million in severance, facilities related costs, and other costs in connection with the 2020 restructuring program. The 2020 restructuring program was completed in the fourth quarter of 2023.

The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

2022

 

2021

 

 

December 31, 2023

 

Precision Medicine and Manufacturing

$

2,220

 

$

2,537

 

$

3,085

 

 

$

8,582

 

Medical Solutions

 

—

 

 

217

 

 

813

 

 

 

2,360

 

Robotics and Automation

 

633

 

 

238

 

 

4,206

 

 

 

5,601

 

Unallocated Corporate and Shared Services

 

—

 

 

2

 

 

29

 

 

 

173

 

Total

$

2,853

 

$

2,994

 

$

8,133

 

 

$

16,716

 

Roll-forward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring charges recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Other

 

Balance at December 31, 2021

$

2,686

 

 

$

2,107

 

 

$

550

 

 

$

29

 

Restructuring charges

 

4,408

 

 

 

2,029

 

 

 

1,995

 

 

 

384

 

Cash payments

 

(3,486

)

 

 

(2,198

)

 

 

(931

)

 

 

(357

)

Non-cash write-offs and other adjustments

 

(1,198

)

 

 

(36

)

 

 

(1,162

)

 

 

—

 

Balance at December 31, 2022

 

2,410

 

 

 

1,902

 

 

 

452

 

 

 

56

 

Restructuring charges

 

11,814

 

 

 

5,832

 

 

 

4,452

 

 

 

1,530

 

Cash payments

 

(8,867

)

 

 

(6,675

)

 

 

(1,379

)

 

 

(813

)

Non-cash write-offs and other adjustments (1)

 

(2,507

)

 

 

(21

)

 

 

(1,845

)

 

 

(641

)

Balance at December 31, 2023

$

2,850

 

 

$

1,038

 

 

$

1,680

 

 

$

132

 

(1) Non-cash write-offs and other adjustments included impairment of assets amounting to $2.5 million.

Acquisition and Related Charges

Acquisition and related costs incurred in connection with business combinations, primarily including finders’ fees, legal, valuation and other professional or consulting fees, totaled $1.0 million, $1.4 million, and $5.9 million during 2023, 2022, and 2021, respectively. The Company incurred legal costs of $1.9 million during 2021 related to a dispute involving a company that was acquired in 2019. Acquisition related costs/(income) recognized under earn-out agreements in connection with acquisitions totaled zero, $(1.4) million, and $1.9 million during 2023, 2022, and 2021, respectively. The acquisition related costs of $1.0 million for 2023 was reported in Unallocated Corporate and Shared Services reportable segment.