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Restructuring and Acquisition Related Costs
6 Months Ended
Jun. 28, 2019
Restructuring And Related Activities [Abstract]  
Restructuring and Acquisition Related Costs

14. Restructuring and Acquisition Related Costs

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 28,

 

 

June 29,

 

 

June 28,

 

 

June 29,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

2019 restructuring

$

1,965

 

 

$

 

 

$

2,932

 

 

$

 

2018 restructuring

 

169

 

 

 

988

 

 

 

438

 

 

 

988

 

Total restructuring charges

 

2,134

 

 

 

988

 

 

 

3,370

 

 

 

988

 

Acquisition and related charges

 

2,179

 

 

 

1,451

 

 

 

2,997

 

 

 

1,476

 

Total restructuring and acquisition related costs

$

4,313

 

 

$

2,439

 

 

$

6,367

 

 

$

2,464

 

2019 Restructuring

During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives. During the three and six months ended June 28, 2019, the Company recorded $1.0 million and $2.0 million, respectively, in severance and related costs, and $0.8 million and $0.9 million, respectively, in facility related costs, in connection with the 2019 restructuring plan. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $3.3 million. The Company anticipates completing the 2019 restructuring program in the first quarter of 2020 and expects to incur additional restructuring charges of $3.0 million to $4.5 million related to the 2019 restructuring program.

 

The following table summarizes restructuring costs associated with the 2019 restructuring program for each reportable segment and unallocated corporate and shared services costs (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 28,

 

 

June 28,

 

 

2019

 

 

2019

 

Photonics

$

1,357

 

 

$

1,550

 

Vision

 

306

 

 

 

656

 

Precision Motion

 

147

 

 

 

194

 

Unallocated Corporate and Shared Services

 

155

 

 

 

532

 

Total

$

1,965

 

 

$

2,932

 

 

2018 Restructuring

During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of recent acquisition activities. During the three and six months ended June 28, 2019, the Company recorded $0.2 million and $0.4 million, respectively, in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $2.1 million. The Company anticipates completing the 2018 restructuring program during the fourth quarter of 2019 and expects to incur additional restructuring charges of $0.5 million to $0.7 million related to the 2018 restructuring program in the Vision 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

 

 

Other

 

Balance at December 31, 2018

$

1,276

 

 

$

876

 

 

$

388

 

 

$

12

 

Restructuring charges

 

3,370

 

 

 

2,281

 

 

 

928

 

 

 

161

 

Cash payments

 

(1,897

)

 

 

(1,719

)

 

 

(19

)

 

 

(159

)

Reclassification of reserves (a)

 

(477

)

 

 

 

 

 

(477

)

 

 

 

Non-cash write-offs and other adjustments

 

(964

)

 

 

(144

)

 

 

(820

)

 

 

 

Balance at June 28, 2019

$

1,308

 

 

$

1,294

 

 

$

 

 

$

14

 

(a)

Accrual related to exited facilities was reclassified to operating lease liabilities upon adoption of ASU 2016-02.

Acquisition and Related Charges

Acquisition related costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $1.4 million and $1.6 million for the three and six months ended June 28, 2019, respectively, and $0.3 million for the three and six months ended June 29, 2018, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $0.8 million and $1.4 million for the three and six months ended June 28, 2019, respectively, and $1.1 million for the three and six months ended June 29, 2018, respectively. The majority of acquisition related costs for the three and six months ended June 28, 2019 were included in the Company’s Precision Motion and Unallocated Corporate and Shared Services reportable segments.