Severance, Restructuring, and Acquisition Integration Activities

Grass Valley and SAM Integration Program: 2018

During the first quarter of 2018, we began a restructuring program to integrate SAM with Grass Valley. The restructuring and integration activities are focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We recognized $42.3 million of severance and other restructuring costs for this program during 2018. The costs were incurred by the Enterprise Solutions segment. We expect to incur approximately $3 million of additional severance and restructuring costs for this program, which will be incurred during the first quarter of 2019.

Industrial Manufacturing Footprint Program: 2016-2018

In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation is complete. We recognized $17.7 million, $30.6 million, and $17.8 million of severance and other restructuring costs for this program during 2018, 2017, and 2016, respectively. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms. To date, we have incurred a total of $66.1 million in severance and other restructuring costs, including manufacturing inefficiencies for this program.

The following tables summarize the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities:



	Severance		Other Restructuring and Integration Costs		Total Costs
			(In thousands)
Year Ended December 31, 2018
Enterprise Solutions	$	9,945	$	47,618	$	57,563
Industrial Solutions	378		10,672		11,050
Total	$	10,323	$	58,290	$	68,613

Year Ended December 31, 2017
Enterprise Solutions	$	4,535	$	24,508	$	29,043
Industrial Solutions	676		13,071		13,747
Total	$	5,211	$	37,579	$	42,790

Year Ended December 31, 2016
Enterprise Solutions	$	520	$	18,041	$	18,561
Industrial Solutions	6,562		6,017		12,579
Total	$	7,082	$	24,058	$	31,140

The other restructuring and integration costs primarily consisted of equipment transfers, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days.

Of the total severance, restructuring, and acquisition integration costs recognized during 2018, $28.1 million, $35.0 million, and $5.5 million were included in cost of sales; selling, general and administrative expenses; and research and development expenses, respectively. Of the total severance, restructuring, and acquisition integration costs recognized during 2017, $32.6 million, $10.0 million, and $0.2 million were included in cost of sales; selling, general and administrative expenses; and research and development expenses, respectively. Of the total severance and other restructuring costs recognized during 2016, $12.3 million, $18.0 million, and $0.8 million were included in cost of sales; selling, general and administrative expenses; and research and development expenses, respectively.

There were no significant severance accrual balances as of December 31, 2018 or 2017.