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Restructuring, Acquisition, and Related Costs
6 Months Ended
Jul. 01, 2022
Restructuring And Related Activities [Abstract]  
Restructuring, Acquisition, and Related Costs

13. Restructuring, Acquisition, and Related Costs

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

 

Three Months Ended

 

 

Six Months Ended

 

 

July 1,

 

 

July 2,

 

 

July 1,

 

 

July 2,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

2020 restructuring

$

610

 

 

$

1,165

 

 

$

1,232

 

 

$

2,503

 

2019 restructuring

 

 

 

 

 

 

 

 

 

 

208

 

Total restructuring charges

 

610

 

 

 

1,165

 

 

 

1,232

 

 

 

2,711

 

Acquisition and related charges

 

2,045

 

 

 

3,469

 

 

 

(207

)

 

 

5,654

 

Total restructuring, acquisition, and related costs

$

2,655

 

 

$

4,634

 

 

$

1,025

 

 

$

8,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 is 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 is focused on cost reduction actions that improve gross margins for the overall company. During the three and six months ended July 1, 2022, the Company recorded $0.6 million and $1.2 million, respectively, in severance and other costs in connection with the 2020 restructuring program. As of July 1, 2022, the Company had incurred cumulative costs related to this restructuring plan totaling $9.3 million. The Company anticipates substantially completing the 2020 restructuring program in the fourth quarter of 2022 and expects to incur additional restructuring charges of $3.0 million to $3.5 million related to the 2020 restructuring program.

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

 

Three Months Ended

 

 

Six Months Ended

 

 

July 1,

 

 

July 2,

 

 

July 1,

 

 

July 2,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Photonics

$

501

 

 

$

195

 

 

$

1,194

 

 

$

490

 

Vision

 

65

 

 

 

275

 

 

 

106

 

 

 

697

 

Precision Motion

 

44

 

 

 

695

 

 

 

(68

)

 

 

1,316

 

Unallocated Corporate and Shared Services

 

 

 

 

 

 

 

 

 

 

 

Total

$

610

 

 

$

1,165

 

 

$

1,232

 

 

$

2,503

 

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 (the “2019 restructuring plan”). The Company did not incur any costs related to the 2019 restructuring plan during the three and six months ended July 1, 2022. As of December 31, 2021, the Company incurred cumulative costs related to this restructuring plan totaling $9.0 million. The 2019 restructuring program was completed in 2021.

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

 

 

Employee Related

 

 

Facility

 

 

Other

 

Balance at December 31, 2021

$

2,686

 

 

$

2,107

 

 

$

550

 

 

$

29

 

Restructuring charges

 

1,232

 

 

 

294

 

 

 

804

 

 

 

134

 

Cash payments

 

(1,819

)

 

 

(959

)

 

 

(743

)

 

 

(117

)

Non-cash charges and other adjustments

 

(155

)

 

 

(74

)

 

 

(79

)

 

 

(2

)

Balance at July 1, 2022

$

1,944

 

 

$

1,368

 

 

$

532

 

 

$

44

 

 

Acquisition and Related Charges

Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $0.2 million and $0.3 million for the three and six months ended July 1, 2022, respectively, and $1.6 million and $1.8 million for the three months and six months ended July 2, 2021, respectively. The Company incurred zero costs for the three and six months ended July 1, 2022, and $0.8 million and $1.8 million in legal costs for the three and six months ended July 2, 2021 related to a dispute involving a company that was acquired in 2019. During the three and six months ended July 1, 2022, the Company recognized $1.8 million and ($0.5) million, respectively, of earn-out expenses related to prior-year acquisitions. During the three and six months ended July 2, 2021, the Company recognized $0.9 million and $1.9 million, respectively, of earn-out expenses related to prior-year acquisitions. The majority of acquisition and related costs for the three and six months ended July 1, 2022 were included in the Company’s Precision Motion, Photonics, and Unallocated Corporate and Shared Services reportable segments. The majority of acquisition and related costs for the three and six months ended July 2, 2021 were included in the Company’s Precision Motion, Vision, and Unallocated Corporate and Shared Services reportable segments.