Restructuring

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring

RestructuringThe restructuring charges for the plans noted below were recognized in accordance with ASC 420, Exit or Disposal Cost Obligations or ASC 712, Compensation – Nonretirement Postemployment Benefits, as applicable. Liabilities were recognized in accordance with ASC 420 when the programs were approved, the employees to be terminated were identified, the terms of the arrangement were established, it was determined changes to the plan were unlikely to occur and the arrangements were communicated to employees. Liabilities for nonretirement postemployment benefits that fall under ASC 712 were recognized when the severance liability was determined to be probable of

being paid and reasonably estimable. The liabilities are recorded within Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The corresponding expenses are recorded within Restructuring and impairment in the Quarterly Condensed Consolidated Statements of Operations. The payments associated with these actions are expected to be completed within 12 months from the balance sheet date.

Operation Simplification and Optimization Program

During the fourth quarter of 2019, the Company approved restructuring actions designed to streamline our operations by simplifying our organization and focusing on two product groups in planned phases. The following table summarizes the activity related to the restructuring reserves for the Operation Simplification and Optimization Program:

Operation Simplification and Optimization Program	Severance and Related Benefit Costs		Costs Associated with Exit and Disposal Costs (1)		Total
Reserve Balance as of December 31, 2019	$	9,506	$	—	$	9,506
Expenses recorded	6,574		1,180		7,754
Payments made	(6,647)		—		(6,647)
Reserve Balance as of March 31, 2020	9,433		1,180		10,613
Expenses recorded	4,865		2,749		7,614
Payments made	(4,297)		(199)		(4,496)
Reserve Balance as of June 30, 2020	10,001		3,730		13,731
Expenses recorded	472		1,361		1,833
Payments made	(2,939)		(2,448)		(5,387)
Reserve Balance as of September 30, 2020	$	7,534	$	2,643	$	10,177

(1) Relates primarily to location exit costs, legal and advisory fees.

The following table is a summary of charges incurred related to the Operation Simplification and Optimization Program in the three and nine months ended September 30, 2020.

	Three Months Ended September 30,
	2020		2019
Severance and related benefit costs	$	472	$	—
Costs associated with exit and disposal activities(1)	506		—
Costs associated with lease exit costs including impairment	855		—
Total	$	1,833	$	—
	Nine Months Ended September 30,
	2020		2019
Severance and related benefit costs	$	11,911	$	—
Costs associated with exit and disposal activities(1)	4,435		—
Costs associated with lease exit costs including impairment(2)	5,763		—
Total	$	22,109	$	—
(1) Relates primarily to contract exit costs, legal and advisory fees.
(2) Includes $4,880 of charges related to impairment of leases and $882 of lease exit costs.

DRG Acquisition Integration Program

During the second quarter of 2020, the Company approved restructuring actions designed to eliminate duplicative costs following the acquisition of DRG in planned phases. The following table summarizes the activity related to the restructuring reserves for the DRG Acquisition Integration:

DRG Acquisition Integration	Severance and Related Benefit Costs		Costs Associated with Exit and Disposal Costs(1)		Total
Reserve balance as of December 31, 2019	$	—	$	—	$	—
Expenses recorded	3,312		12		3,324
Payments made	(1,252)		—		(1,252)
Reserve balance as of June 30, 2020	2,060		12		2,072
Expenses recorded	1,210		149		1,359
Payments made	(1,013)		(144)		(1,157)
Reserve balance as of September 30, 2020	$	2,257	$	17	$	2,274

(1) Relates primarily to lease exit costs and legal and advisory fees.

The following table is a summary of charges incurred related to the DRG Acquisition Integration in the three and nine months ended September 30, 2020.

	Three Months Ended September 30
	2020
Severance and related benefit costs	$	1,210
Costs associated with exit and disposal activities(1)	149
Total	$	1,359
	Nine Months Ended September 30,
	2020
Severance and related benefit costs	$	4,522
Costs associated with exit and disposal activities(1)	161
Total	$	4,683
(1) Relates primary to lease exit costs and legal and advisory fees.