Restructuring (Notes)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

2020 Projects

On September 17, 2020, our Board of Directors approved a restructuring plan (the 2020 Projects), which includes activities that continue our efforts to optimize our global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are scheduled to be substantially complete by the end of 2022. The largest component of expected remaining costs to be recognized is related to a non-cash cumulative translation adjustment charge. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:


In thousands	Total Expected Costs at March 31, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2021		Expected Remaining Costs to be Recognized at March 31, 2021
Employee severance costs	$	32,907	$	36,225	$	(3,318)	$	—
Asset impairments & net loss (gain) on sale or disposal	6,861		6,944		(83)		—
Other restructuring costs	17,076		63		771		16,242
Total	$	56,844	$	43,232	$	(2,630)	$	16,242

2018 Projects

In February 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. Actions under the 2018 Projects were substantially completed as of the end of 2020.

During the first quarter of 2021, we incurred additional legal costs related to a facility closure, partially offset by reduced severance costs.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:


In thousands	Total Expected Costs at March 31, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2021		Expected Remaining Costs to be Recognized at March 31, 2021
Employee severance costs	$	61,476	$	63,173	$	(1,697)	$	—
Asset impairments & net loss (gain) on sale or disposal	2,824		2,786		38		—
Other restructuring costs	19,826		15,217		2,309		2,300
Total	$	84,126	$	81,176	$	650	$	2,300

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and 2018 Projects during the three months ended March 31, 2021:


In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2021	$	70,005	$	—	$	2,621	$	72,626
Costs charged to expense	(5,015)		(45)		3,080		(1,980)
Cash (payments) receipts	(6,269)		1,868		(1,498)		(5,899)
Net assets disposed and impaired	—		(1,823)		—		(1,823)
Effect of change in exchange rates	(2,250)		—		(33)		(2,283)
Ending balance, March 31, 2021	$	56,471	$	—	$	4,170	$	60,641

Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results.

Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, costs to exit the facilities once the operations in those facilities have ceased, and other costs associated with the liquidation of any effected legal entities. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset. Restructuring expense is part of the Corporate unallocated segment and does not impact the results of our operating segments.

The current portion of restructuring liabilities were $30.2 million and $31.7 million as of March 31, 2021 and December 31, 2020. The current portion of restructuring liabilities is classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances were $30.4 million and $40.9 million as of March 31, 2021 and December 31, 2020. The long-term portion of restructuring liabilities is classified within other long-term obligations on the Consolidated Balance Sheets and includes severance accruals and facility exit costs.