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Restructuring and Related Costs
 3 Months Ended
Mar. 28, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs Restructuring and Related Costs
In December of 2018, the Company implemented a restructuring initiative (the “2018 Restructuring Plan”) as part of a comprehensive review of the Company's operations and ongoing integration activities in order to optimize resources for future growth, improve efficiencies and address redundancies following the acquisition of Telecom Holding Parent LLC (“Coriant”), a privately held global supplier of open network solutions for the largest global network operators (the “Acquisition”). As part of the 2018 Restructuring Plan, the Company has made several changes it believes will help its research and development efficiency, with consolidation of its manufacturing and development sites, including closure of its Berlin, Germany site, reduction of headcount at its Munich, Germany site, process changes to leverage the Company's engineering and product line development resources across regions and prioritization of research and development initiatives. As of March 28, 2020, the Berlin and Munich initiatives have been substantially completed, with some remaining payments to be made in 2020. Additional restructuring initiatives may continue as the Company shifts to transformation initiatives.
In connection with the Acquisition, the Company assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans consisting of termination benefits primarily comprised of severance payments. These costs are recorded at estimated fair value.
The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the Company's earlier restructuring initiatives (in thousands):
 
Three Months Ended
 
March 28, 2020
 
Cost of
Revenue
 
Operating Expenses
Severance and related expenses
$
1,102

 
$
2,630

Lease related impairment charges
44

 
2,945

Asset impairment
12

 
5

Total
$
1,158

 
$
5,580

 
Three Months Ended
 
March 30, 2019
 
Cost of
Revenue
 
Operating Expenses
Severance and related expenses
$
20,698

 
$
5,850

Accelerated amortization of lease assets due to cease use
—

 
11,338

Asset impairment
768

 
—

Total
$
21,466

 
$
17,188


Restructuring liabilities are reported within accrued expenses, operating lease liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands):
 
December 28, 2019
 
Charges
 
Cash
 
Non-cash Settlements and Other
 
March 28, 2020
Severance and related expenses
$
28,565

 
$
3,732

 
$
(6,083
)
 
$
(181
)
 
$
26,033

Lease related impairment charges
—

 
2,989

 
(1,407
)
 
(1,582
)
 
—

Asset impairment
—

 
17

 
(28
)
 
11

 
—

Others
838

 
—

 
(126
)
 
(8
)
 
704

Total
$
29,403

 
$
6,738

 
$
(7,644
)
 
$
(1,760
)
 
$
26,737


As of March 28, 2020, the Company's restructuring liability was comprised of $26.0 million of severance and related expenses, of which $6.3 million is related to assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans and is expected to be paid by 2022. The remaining $19.7 million is primarily related to the 2018 Restructuring Plan and is expected to be substantially paid by the end of 2020. The Company's restructuring liability as of March 28, 2020 also comprised of $0.7 million related to service agreements that were determined to have no future use. The Company expects the payments related to the service agreements
to be fully paid by the second quarter of 2021. Other and non-cash settlements primarily include foreign exchange impact on settlement of restructuring liability and impairment of right of use asset.