Restructuring and Other Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

(9) Restructuring and Other Charges

In 2021, the Company made the strategic decision to relocate manufacturing functions of DZS GmbH and Optelian to Seminole, Florida and to transition the above subsidiaries to sales and research and development centers. The Company incurred approximately $13.1 million of restructuring and other charges since the beginning of its restructuring activities in the first quarter of 2021. For the three and six months ended June 30, 2022, the Company recorded $0.4 million and $0.8 million of restructuring related costs, respectively, consisting primarily of logistics costs and professional services related to legal and accounting support. For the three months ended June 30, 2021, the Company recorded a $0.9 million reduction to restructuring related costs due to the negotiated decrease of the employee termination benefits. For the six months ended June 30, 2021 the Company recorded $5.3 million of restructuring related costs, consisting primarily of severance and other termination related benefits of $2.4 million, an impairment of long-lived assets charge of $2.7 million primarily related to right-of-use assets from operating leases, and $0.2 million of other charges. The Company paid in full its liability related to termination benefits as of June 30, 2022.