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Restructuring and Acquisition Related Costs
3 Months Ended
Apr. 03, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Acquisition Related Costs

14. Restructuring and Acquisition Related Costs

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

 

Three Months Ended

 

 

April 3,

 

 

March 29,

 

 

2020

 

 

2019

 

2019 restructuring

$

569

 

 

$

967

 

2018 restructuring

 

86

 

 

 

269

 

Total restructuring charges

 

655

 

 

 

1,236

 

Acquisition and related charges

 

1,006

 

 

 

818

 

Total restructuring and acquisition related costs

$

1,661

 

 

$

2,054

 

2019 Restructuring

During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives. During the three months ended April 3, 2020, the Company recorded $0.1 million in severance and related costs, $0.2 million in facility related costs, and other costs of $0.2 million in connection with the 2019 restructuring plan. As of April 3, 2020, the Company incurred cumulative costs related to this restructuring plan totaling $8.4 million. The 2019 restructuring program was substantially completed in the first quarter of 2020.

The following table summarizes restructuring costs associated with the 2019 restructuring program by reportable segment (in thousands):

 

Three Months Ended

 

 

April 3,

 

 

March 29,

 

 

2020

 

 

2019

 

Photonics

$

203

 

 

$

193

 

Vision

 

289

 

 

 

350

 

Precision Motion

 

64

 

 

 

47

 

Unallocated Corporate and Shared Services

 

13

 

 

 

377

 

Total

$

569

 

 

$

967

 

 

2018 Restructuring

During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of acquisition activities. During the three months ended April 3, 2020, the Company recorded $0.1 million in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. As of April 3, 2020, the Company incurred cumulative costs related to this restructuring plan totaling $2.9 million. The 2018 restructuring program was substantially completed in the first quarter of 2020.

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

 

 

Other

 

Balance at December 31, 2019

$

2,073

 

 

$

1,988

 

 

$

 

 

$

85

 

Restructuring charges

 

655

 

 

 

212

 

 

 

221

 

 

 

222

 

Cash payments

 

(1,356

)

 

 

(987

)

 

 

(66

)

 

 

(303

)

Non-cash write-offs and other adjustments

 

(1

)

 

 

(1

)

 

 

 

 

 

 

Balance at April 3, 2020

$

1,371

 

 

$

1,212

 

 

$

155

 

 

$

4

 

 

Acquisition and Related Charges

Acquisition related costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $0.1 million and $0.3 million for the three months ended April 3, 2020 and March 29, 2019, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $0.9 million and $0.5 million for the three months ended April 3, 2020 and March 29, 2019, respectively. The majority of acquisition related costs for the three months ended April 3, 2020 and March 29, 2019 were included in the Company’s Precision Motion and Unallocated Corporate and Shared Services reportable segments.