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Restructuring, Acquisition and Divestiture Related Costs
3 Months Ended
Mar. 31, 2017
Restructuring And Related Activities [Abstract]  
Restructuring, Acquisition and Divestiture Related Costs

12. Restructuring, Acquisition and Divestiture Related Costs

The following table summarizes restructuring, acquisition and divestiture related costs in the accompanying consolidated statements of operations (in thousands):

 

 

Three Months Ended

 

 

March 31,

 

 

April 1,

 

 

2017

 

 

2016

 

2016 restructuring

$

33

 

 

$

2,500

 

2011 restructuring

 

4

 

 

 

212

 

Total restructuring and divestiture charges

 

37

 

 

 

2,712

 

Acquisition and related charges

 

780

 

 

 

246

 

Total restructuring, acquisition and divestiture related costs

$

817

 

 

$

2,958

 

 

2016 Restructuring

During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain of our manufacturing operations to optimize our facility footprint and better utilize resources, costs associated with discontinuing our radiology product line and reducing redundant costs due to productivity cost savings and business volume reductions. We substantially completed the 2016 restructuring program during the second quarter of 2016. As of March 31, 2017, the Company incurred cumulative costs related to this restructuring plan totaling $6.2 million. The Company expects to incur additional restructuring charges of $0.2 million to $0.3 million related to the 2016 restructuring plan.

The following table summarizes restructuring costs for each segment and unallocated corporate and shared services related to the 2016 restructuring plan (in thousands):

 

Three Months Ended

 

 

March 31,

 

 

April 1,

 

 

2017

 

 

2016

 

Photonics

$

 

 

$

469

 

Vision

 

32

 

 

 

1,739

 

Precision Motion

 

 

 

 

87

 

Unallocated Corporate and Shared Services

 

1

 

 

 

205

 

Total

$

33

 

 

$

2,500

 

2011 Restructuring

In November 2011, the Company announced a strategic initiative (“2011 restructuring”), which aimed to consolidate operations to reduce the Company’s cost structure and improve operational efficiency. As part of this initiative, the Company eliminated facilities through the consolidation of certain manufacturing, sales and distribution facilities and the exit of Semiconductor Systems and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold its previously exited Laser Systems facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. In December 2016, the lease agreement for the Company’s previously exited laser scanner business facility was terminated.

Rollforward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands):

 

 

Total

 

 

Severance

 

 

Facility

 

 

Depreciation

 

 

Other

 

Balance at December 31, 2016

$

1,736

 

 

$

611

 

 

$

1,111

 

 

$

 

 

$

14

 

Restructuring charges

 

37

 

 

 

32

 

 

 

 

 

 

 

 

 

5

 

Cash payments

 

(420

)

 

 

(281

)

 

 

(125

)

 

 

 

 

 

(14

)

Non-cash write-offs and other adjustments

 

 

 

 

8

 

 

 

(8

)

 

 

 

 

 

 

Balance at March 31, 2017

$

1,353

 

 

$

370

 

 

$

978

 

 

$

 

 

$

5

 

Acquisition and Related Charges

Acquisition related costs incurred to effect a business combination, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $0.8 million and $0.3 million for the three months ended March 31, 2017 and April 1, 2016, respectively.