Severance, Restructuring, and Acquisition Integration Activities

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Severance, Restructuring, and Acquisition Integration Activities

Grass Valley and SAM Integration Program: 2018 - 2019

In 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 $3.0 million and $9.2 million of severance and other restructuring costs for this program during the three months ended March 31, 2019 and April 1, 2018, respectively. The costs were incurred by the Enterprise Solutions segment. We do not expect to incur any more costs for this program.

Industrial Manufacturing Footprint Program: 2016 - 2018

In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation was complete as of December 31, 2018. We recognized $7.5 million of severance and other restructuring costs for this program during the three months ended April 1, 2018. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms.

The following table summarizes 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

Three Months Ended March 31, 2019	(In thousands)
Enterprise Solutions	$	220	$	3,555	$	3,775
Industrial Solutions	—		—		—
Total	$	220	$	3,555	$	3,775

Three Months Ended April 1, 2018
Enterprise Solutions	$	508	$	14,026	$	14,534
Industrial Solutions	52		5,808		5,860
Total	$	560	$	19,834	$	20,394

Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended March 31, 2019, $0.6 million, $2.8 million, and $0.4 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 in the three months ended April 1, 2018, $9.4 million, $9.4 million, and $1.6 million were included in cost of sales; selling, general and administrative expenses; and research and development expenses, respectively.

The other restructuring and integration costs primarily consisted of equipment transfer, 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.

There were no significant severance accrual balances as of March 31, 2019 or December 31, 2018.