Severance, Restructuring, and Acquisition Integration Activities

9 Months Ended

Oct. 01, 2023

Restructuring and Related Activities [Abstract]

Severance, Restructuring, and Acquisition Integration Activities

Severance, Restructuring, and Acquisition Integration Activities

Acquisition Integration Program

We are integrating our recent acquisitions with our existing businesses to achieve desired cost savings, which are primarily focused on consolidating existing and acquired facilities as well as other support functions. The Enterprise Solutions segment incurred $3.2 million and $4.5 million of restructuring and integration costs during the three and nine months ended October 1, 2023, and the Industrial Automation Solutions segment incurred $1.6 million and $2.4 million of restructuring and integration costs during the three and nine months ended October 1, 2023, respectively. The Enterprise Solutions segment incurred $3.7 million and $4.7 million of restructuring and integration costs during the three and nine months ended October 2, 2022, and the Industrial Automation Solutions segment incurred $0.1 million and $3.2 million of restructuring and integration costs during the three and nine months ended October 2, 2022, respectively.

The restructuring and integration costs incurred during 2023 and 2022 primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days. Furthermore, there were no significant severance accrual balances as of October 1, 2023 or December 31, 2022.

The following table summarizes the severance and other restructuring and integration costs of the Acquisition Integration Program described above by financial statement line item in the Condensed Consolidated Statement of Operations:

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
	(In thousands)
Cost of sales	$	214	$	2,809	$	214	$	8,873
Selling, general and administrative expenses	4,657		1,823		6,654		5,756
Research and development expenses	(50)		—		44		—
Total	$	4,821	$	4,632	$	6,912	$	14,629