Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING

In the first quarter of 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. Key activities under the Restructuring Plan include a continued focus on efficiency and cost-saving efforts, which included a planned decrease of total headcount by approximately 500 employees upon the completion of the Restructuring Plan.

On July 15, 2021, we entered into a manufacturing services agreement (the “Agreement”) with Sanmina Corporation (Nasdaq: SANM) (“Sanmina”), in connection with the Restructuring Plan. Under the Agreement, Sanmina will provide manufacturing services for the Company’s measurement device products previously manufactured by the Company at the Company’s Lake Mary, Florida, Exton, Pennsylvania, and Stuttgart, Germany manufacturing sites. This phased transition to a Sanmina production facility was substantially completed at the end of the second quarter of 2022 as part of our cost reduction initiative. The facilities which previously housed our manufacturing function are currently under evaluation for a reduction in occupancy. All of these facilities are mixed-use spaces with our service, research and development, or sales teams, and are in use for those functions.

In connection with the Restructuring Plan, we paid $2.8 million during the six months ended June 30, 2022, primarily consisting of severance and related benefits. Since the approval of the Restructuring Plan, we have paid $21.7 million, primarily consisting of severance and related benefits. Activity related to the accrued restructuring charge and cash payments during the six months ended June 30, 2022 and June 30, 2021 was as follows:


	Severance and other benefits		Professional fees and other related charges		Total
Balance at December 31, 2021	$	3,442	$	477	$	3,919
Additions charged to expense	1,422		510		1,932
Cash payments	(2,016)		(819)		(2,835)
Balance at June 30, 2022	$	2,848	$	168	$	3,016

Balance at December 31, 2020	$	1,481	$	867	$	2,348
Additions charged to expense	1,480		823		2,303
Cash payments	(2,257)		(1,279)		(3,536)
Balance at June 30, 2021	$	704	$	411	$	1,115

Substantially all of our planned activities under the Restructuring Plan are complete and as part of our final steps, we expect to incur remaining pre-tax charges in the range of $1 million to $3 million through the end of fiscal year 2022. We have reduced our total headcount by approximately 390 employees. The Company expects to make concluding cash payments of approximately $4 million in the remainder of fiscal year 2022, consisting of severance and related benefits.