Restructuring (Notes)

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

2020 Projects

In September 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. 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.

In the third quarter of 2021, expected remaining costs to be recognized were reduced by $13.0 million due to the removal of a previously planned non-cash cumulative translation adjustment charge, resulting from our recent reassessment of the legal entity and its related operations.

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 September 30, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Nine Months Ended September 30, 2021		Expected Remaining Costs to be Recognized at September 30, 2021
Employee severance costs	$	32,583	$	36,225	$	(3,642)	$	—
Asset impairments & net loss (gain) on sale or disposal	6,893		6,944		(51)		—
Other restructuring costs	4,546		63		1,920		2,563
Total	$	44,022	$	43,232	$	(1,773)	$	2,563

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 nine months ended September 30, 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 September 30, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Nine Months Ended September 30, 2021		Expected Remaining Costs to be Recognized at September 30, 2021
Employee severance costs	$	59,229	$	63,173	$	(3,944)	$	—
Asset impairments & net loss (gain) on sale or disposal	3,788		2,786		1,002		—
Other restructuring costs	19,752		15,217		3,885		650
Total	$	82,769	$	81,176	$	943	$	650

The following table summarizes the activity within the restructuring-related balance sheet accounts for the 2020 Projects and 2018 Projects during the nine months ended September 30, 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	(7,586)		951		5,805		(830)
Cash payments	(16,431)		—		(4,725)		(21,156)
Cash receipts	—		2,007		—		2,007
Net assets disposed and impaired	—		(2,958)		—		(2,958)
Effect of change in exchange rates	(2,377)		—		(47)		(2,424)
Ending balance, September 30, 2021	$	43,611	$	—	$	3,654	$	47,265

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 affected 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 portions of restructuring liabilities were $28.7 million and $31.7 million as of September 30, 2021 and December 31, 2020 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $18.6 million and $40.9 million as of September 30, 2021 and December 31, 2020. The long-term portions of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheet and includes severance accruals and facility exit costs.