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Restructuring, Acquisition and Divestiture Related Costs
3 Months Ended
Apr. 01, 2016
Restructuring And Related Activities [Abstract]  
Restructuring, Acquisition and Divestiture Related Costs

12. Restructuring, Acquisition and Divestiture Related Costs

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

 

 

Three Months Ended

 

 

April 1,

2016

 

 

April 3,

2015

 

2016 restructuring

$

2,500

 

 

$

 

2015 restructuring

 

 

 

 

1,370

 

2011 restructuring

 

212

 

 

 

383

 

Total restructuring charges

 

2,712

 

 

 

1,753

 

Acquisition and related charges

 

246

 

 

 

127

 

Divestiture related charges

 

 

 

 

557

 

Total acquisition and divestiture related charges

 

246

 

 

 

684

 

Total restructuring, acquisition and divestiture related costs

$

2,958

 

 

$

2,437

 

 

2016 Restructuring

During the third quarter of 2015, the Company initiated the 2016 restructuring program, which includes consolidating certain of our manufacturing operations to optimize our facility footprint and better utilize resources, and reducing redundant costs due to productivity cost savings and business volume reductions. We anticipate completing the 2016 restructuring program during the second quarter of 2016. During the three months ended April 1, 2016, the Company incurred restructuring costs of $2.5 million related to the 2016 restructuring plan. Restructuring costs incurred during the three months ended April 1, 2016 of $0.5 million, $1.7 million, $0.1 million and $0.2 million related to the Laser Products, Vision Technologies, Precision Motion and Unallocated Corporate and Shared Services reportable segments, respectively. As of April 1, 2016, the Company incurred cumulative costs related to this restructuring plan totaling $5.6 million. The Company expects to incur additional restructuring charges of $1.0 million to $1.6 million related to the 2016 restructuring plan.

2015 Restructuring

During the first quarter of 2015, the Company initiated a program to eliminate redundant costs, as a result of acquisition and divestiture activities, to better align our operations to our strategic growth plans, to further integrate our business lines, and as a consequence of our productivity initiatives. During the three months ended April 3, 2015, the Company incurred $1.3 million in severance costs related to the 2015 restructuring. Restructuring costs of $0.6 million, $0.4 million, $0.1 million and $0.3 million related to the Laser Products, Vision Technologies, Precision Motion and Unallocated Corporate and Shared Services reportable segments, respectively.

2011 Restructuring

In November 2011, the Company announced a strategic initiative (“2011 restructuring”), which aimed to consolidate operations to reduce the Company’s cost structure and improve operational efficiency. As part of this initiative, the Company eliminated facilities through the consolidation of certain manufacturing, sales and distribution facilities and the exit of Semiconductor and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold our previously exited Laser Systems facility located in Orlando, Florida for a net cash consideration of $3.6 million. Restructuring costs for the three months ended April 1, 2016 included facility costs of $0.2 million related to the Orlando, Florida facility. These costs were recorded in the Unallocated Corporate and Shared Services reportable segment.

Rollforward of Accrued Expenses Related to Restructuring

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

 

 

Total

 

 

Severance

 

 

Facility

 

 

Depreciation

 

 

Other

 

Balance at December 31, 2015

$

1,882

 

 

$

1,358

 

 

$

406

 

 

$

 

 

$

118

 

Restructuring charges

 

2,712

 

 

 

1,585

 

 

 

115

 

 

 

602

 

 

 

410

 

Cash payments

 

(1,330

)

 

 

(975

)

 

 

(28

)

 

 

 

 

 

(327

)

Non-cash write-offs and other adjustments

 

(604

)

 

 

 

 

 

 

 

 

(602

)

 

 

(2

)

Balance at April 1, 2016

$

2,660

 

 

$

1,968

 

 

$

493

 

 

$

 

 

$

199