Restructuring and Other Charges

12 Months Ended

Dec. 31, 2021

Restructuring And Related Activities [Abstract]

Restructuring and Other Charges

(6) Restructuring and other charges

In March 2021, the Company made the strategic decision to transition DZS GmbH to a sales and research and development center by the end of 2021. In July 2021, the Company came to an agreement with the works council and entered into a social plan that covers statutory benefits and one-time severance obligations. The Company recognized expense for the statutory benefit obligations when such amounts were probable and estimable and the Company recognized expense for the one-time severance when the final terms of the benefit arrangement were communicated to the affected employees. The Company recorded related restructuring and other charges of approximately $11.9 million for the year December 31, 2021, consisting of termination-related benefits of $8.2 million, an impairment of long-lived assets charge of $2.7 million primarily related to right-of-use assets from operating leases, professional services of $0.9 million, and $0.1 million of other charges. The termination-related benefits are comprised of statutory benefits of $1.7 million and one-time severance obligations of $6.5 million.

In May 2021, the Company made the strategic decision to relocate manufacturing function of Optelian to Seminole, Florida and eliminate redundant workforces. The Company incurred restructuring and other charges of approximately $0.4 million for the year ended December 31, 2021, consisting primarily of termination-related benefits.

As of December 31, 2021, the Company had $0.8 million of accrued liabilities related to the restructuring costs.