Warranty and restructuring costs

12 Months Ended

Dec. 31, 2019

Changes to warranty and after sale service liabilities

Warranty and restructuring costs

11.  WARRANTY AND RESTRUCTURING COSTS

In response to changes in the geostationary communications satellite market, in 2018 the Company enacted a restructuring plan to reduce headcount at its Palo Alto manufacturing facility and to implement enterprise improvement initiatives aimed at reducing overhead costs, reducing general and administrative costs, increasing supply chain value and increasing efficiency of production processes.

In February 2019, the Company announced another restructuring plan to implement cost-saving measures, including a reduction in the Company’s workforce. The reduction in the Company’s workforce was substantially completed in the first half of 2019, with cash payments occurring throughout 2019.

Changes to warranty and restructuring liabilities during the years ended December 31, 2019 and 2018, are as follows:

	Warranty and after-sale service		Restructuring
Balance as of December 31, 2017	$	39	$	1
Obligations incurred		5		13
Payments/uses		(4)		(11)
Balance as of December 31, 2018	$	40	$	3
Obligations incurred		3		18
Payments/uses		(2)		(19)
Balance as of December 31, 2019	$	41	$	2