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

14. Restructuring, Acquisition, and Related Costs

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

 

Three Months Ended

 

 

Six Months Ended

 

 

July 3,

 

 

June 28,

 

 

July 3,

 

 

June 28,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

2019 restructuring

$

30

 

 

$

1,965

 

 

$

599

 

 

$

2,932

 

2018 restructuring

 

668

 

 

 

169

 

 

 

754

 

 

 

438

 

Total restructuring charges

 

698

 

 

 

2,134

 

 

 

1,353

 

 

 

3,370

 

Acquisition and related charges

 

1,545

 

 

 

2,179

 

 

 

2,551

 

 

 

2,997

 

Total restructuring, acquisition, and related costs

$

2,243

 

 

$

4,313

 

 

$

3,904

 

 

$

6,367

 

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 (the “2019 restructuring plan”). During the six months ended July 3, 2020, the Company recorded $0.1 million in severance and related costs, $0.2 million in facility related costs, and other costs of $0.3 million in connection with the 2019 restructuring plan. As of July 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

 

 

Six Months Ended

 

 

July 3,

 

 

June 28,

 

 

July 3,

 

 

June 28,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Photonics

$

8

 

 

$

1,357

 

 

$

211

 

 

$

1,550

 

Vision

 

2

 

 

 

306

 

 

 

291

 

 

 

656

 

Precision Motion

 

14

 

 

 

147

 

 

 

78

 

 

 

194

 

Unallocated Corporate and Shared Services

 

6

 

 

 

155

 

 

 

19

 

 

 

532

 

Total

$

30

 

 

$

1,965

 

 

$

599

 

 

$

2,932

 

 

2018 Restructuring

During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of acquisition activities (the “2018 restructuring plan”). During the six months ended July 3, 2020, the Company recorded $0.8 million in severance and other costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. As of July 3, 2020, the Company incurred cumulative costs related to this restructuring plan totaling $3.6 million. The 2018 restructuring program has been substantially completed.

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

 

1,353

 

 

 

820

 

 

 

222

 

 

 

311

 

Cash payments

 

(1,974

)

 

 

(1,542

)

 

 

(80

)

 

 

(352

)

Non-cash charges and other adjustments

 

(237

)

 

 

(237

)

 

 

 

 

 

 

Balance at July 3, 2020

$

1,215

 

 

$

1,029

 

 

$

142

 

 

$

44

 

 

Acquisition and Related Charges

Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled less than $0.1 million and $0.1 million for the three and six months ended July 3, 2020, respectively, and $1.4 million and $1.6 million for the three and six months ended June 28, 2019, respectively. During the three and six months ended July 3, 2020, we incurred $0.6 million in legal costs related to an arbitration demand in connection with a pre-acquisition contract dispute from a 2019 acquisition. Acquisition and related costs recognized under earn-out agreements in connection with acquisitions totaled $0.9 million and $1.8 million for the three and six months ended July 3, 2020, respectively, and $0.8 million and $1.4 million for the three and six months ended June 28, 2019, respectively. The majority of acquisition and related costs for the three and six months ended July 3, 2020 were included in the Company’s Precision Motion and Vision reportable segments. The majority of acquisition and related costs for the three and six months ended June 28, 2019 were included in the Company’s Precision Motion and Unallocated Corporate and Shared Services reportable segments.