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Restructuring and Acquisition Related Costs
12 Months Ended
Dec. 31, 2019
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,

 

 

2019

 

 

2018

 

 

2017

 

2019 restructuring

$

7,463

 

 

$

378

 

 

$

 

2018 restructuring

 

1,177

 

 

 

1,647

 

 

 

 

2016 restructuring

 

 

 

 

 

 

 

332

 

2011 restructuring

 

 

 

 

 

 

 

14

 

Total restructuring related charges

$

8,640

 

 

$

2,025

 

 

$

346

 

Acquisition and related charges

 

7,934

 

 

 

6,016

 

 

 

7,196

 

Total restructuring and acquisition related costs

$

16,574

 

 

$

8,041

 

 

$

7,542

 

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. In 2019, the Company recorded $3.8 million in severance and related costs, $2.6 million in impairment of operating lease right-of-use assets and $1.1 million in impairment of long-lived assets in connection with the 2019 restructuring plan. The Company anticipates completing the 2019 restructuring program in the first quarter of 2020 and expects to incur additional restructuring charges of $0.1 million to $0.2 million related to the 2019 restructuring program in the next twelve months.

The following table summarizes restructuring costs associated with the 2019 restructuring program by reportable segment (in thousands):

 

 

Year Ended

 

 

Cumulative Costs as of

 

 

December 31, 2019

 

 

December 31, 2018

 

 

December 31, 2019

 

Photonics

$

4,983

 

 

$

 

 

$

4,983

 

Vision

 

1,422

 

 

 

324

 

 

 

1,746

 

Precision Motion

 

590

 

 

 

 

 

 

590

 

Unallocated Corporate and Shared Services

 

468

 

 

 

54

 

 

 

522

 

Total

$

7,463

 

 

$

378

 

 

$

7,841

 

 

2018 Restructuring

During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of acquisition activities. In 2019, the Company recorded $1.2 million in severance and related costs in connection with the 2018 restructuring plan. The Company anticipates completing the 2018 restructuring program during the first quarter of 2020 and expects to incur additional restructuring charges of $0.1 million to $0.2 million related to the 2018 restructuring program.

The following table summarizes restructuring costs associated with the 2018 restructuring program by reportable segment (in thousands):

 

 

Year Ended

 

 

Cumulative Costs as of

 

 

December 31, 2019

 

 

December 31, 2018

 

 

December 31, 2019

 

Photonics

$

 

 

$

 

 

$

 

Vision

 

1,177

 

 

 

1,579

 

 

 

2,756

 

Precision Motion

 

 

 

 

 

 

 

 

Unallocated Corporate and Shared Services

 

 

 

 

68

 

 

 

68

 

Total

$

1,177

 

 

$

1,647

 

 

$

2,824

 

 

2016 Restructuring

During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain manufacturing operations to optimize facility footprint and better utilize resources, and reducing redundant costs due to productivity cost savings and business volume reductions. As of December 31, 2017, the Company incurred cumulative costs related to this restructuring plan totaling $6.5 million, net of the gain on the sale of the Chatsworth, California facility. The plan was completed in 2017.

The following table summarizes restructuring costs associated with the 2016 restructuring program by reportable segment (in thousands):

 

 

Year Ended

Cumulative Costs as of

 

 

December 31, 2017

 

 

December 31, 2017

 

Photonics

$

 

 

$

868

 

Vision

 

331

 

 

 

4,393

 

Precision Motion

 

 

 

 

939

 

Unallocated Corporate and Shared Services

 

1

 

 

 

329

 

Total

$

332

 

 

$

6,529

 

Rollforward 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

 

 

Severance

 

 

Facility

 

 

Other (1)

 

Balance at December 31, 2017

$

806

 

 

$

39

 

 

$

763

 

 

$

4

 

Restructuring charges

 

2,025

 

 

 

1,862

 

 

 

 

 

 

163

 

Cash payments

 

(1,490

)

 

 

(962

)

 

 

(373

)

 

 

(155

)

Non-cash write-offs and other adjustments

 

(65

)

 

 

(63

)

 

 

(2

)

 

 

 

Balance at December 31, 2018

 

1,276

 

 

 

876

 

 

 

388

 

 

 

12

 

Restructuring charges

 

8,640

 

 

 

4,065

 

 

 

3,798

 

 

 

777

 

Cash payments

 

(3,507

)

 

 

(2,803

)

 

 

 

 

 

(704

)

Reclassification of reserves (2)

 

(388

)

 

 

 

 

 

(388

)

 

 

 

Non-cash write-offs and other adjustments (3)

 

(3,948

)

 

 

(150

)

 

 

(3,798

)

 

 

 

Balance at December 31, 2019

$

2,073

 

 

$

1,988

 

 

$

 

 

$

85

 

(1)

Other restructuring charges mainly related to consulting fees and relocation costs.

(2)

Accruals related to facilities exited prior to January 1, 2019 were reclassified to operating lease liabilities upon adoption of ASU 2016-02.

(3)

Non-cash write-offs included impairment of operating lease right-of-use assets amounting to $2.6 million associated with the cessation of use of certain leased facilities.

The Company expects to make $2.0 million in cash payments related to these restructuring plans during the twelve months ending December 31, 2020.

Acquisition and Related Charges

Acquisition related costs incurred in connection with business combinations, primarily including finders’ fees, legal, valuation and other professional or consulting fees, totaled $5.3 million, $1.4 million, and $6.8 million during 2019, 2018, and 2017, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $2.6 million,

$4.6 million, and $0.4 million during 2019, 2018, and 2017, respectively. The majority of acquisition related costs for 2019 were included in the Company’s Precision Motion and Unallocated Corporate and Shared Services reportable segments.