Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

18. RESTRUCTURING

During the second half of 2019, the Company initiated a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally. Management continued to assess the efficiency of operations during 2020 and the first three months of 2021 and, in turn, consolidated locations and personnel, among other things, where possible.

In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020.

The cumulative amount of restructuring expenses incurred as of June 30, 2022 for the restructuring plans was $12.7 million.

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Condensed Consolidated Balance Sheets is as follows:

	Three Months Ended			Six Months Ended
(In thousands)	June 30, 2022			June 30, 2022
Balance at beginning of period	$	260		$	1,514
Plus: Amounts charged to cost and expense		—			2
Less: Amounts paid		(13	)		(1,269	)
Balance as of June 30, 2022	$	247		$	247

	For the Year Ended
(In thousands)	December 31, 2021
Balance as of December 31, 2020	$	4,186
Plus: Amounts charged to cost and expense		411
Less: Amounts paid		(3,083	)
Balance as of December 31, 2021	$	1,514

Restructuring expenses included in the Condensed Consolidated Statements of Income were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2022		2021		2022		2021
Network Solutions - Cost of revenue	$	—	$	—	$	—	$	12
Services & Support - Cost of revenue		—		—		—		3
Cost of revenue	$	—	$	—	$	—	$	15
Selling, general and administrative expenses (1)		—		3		2		145
Research and development expenses (1)		—		5		—		149
Total restructuring expenses	$	—	$	8	$	2	$	309

(1) The Company does not allocate selling, general and administrative expense and research and development expense to the segment level.

Components of restructuring expense by geographic area were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2022		2021		2022		2021
United States	$	—	$	3	$	2	$	212
International		—		5		—		97
Total restructuring expenses	$	—	$	8	$	2	$	309