Restructuring and Related Activities (Notes)

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and related activities are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions, and other measures to further optimize operations.

During the three and six months ended June 30, 2020, the Company restructured its Intelligent Audio product line, which is included within the Audio segment. These actions resulted in a reduction in workforce and the refocusing of certain research and development activities. During the three and six months ended June 30, 2020, the Company recorded restructuring charges of $4.9 million and $8.3 million, respectively, related to these actions, including $3.3 million and $5.4 million, respectively, in severance pay and benefits, $0.4 million and $1.7 million, respectively, in fixed asset write-off costs, and $1.2 million in contract termination costs. The Company does not expect to incur additional restructuring costs related to this product line during the remainder of the fiscal year.

In addition, during the three and six months ended June 30, 2020, the Company recorded restructuring charges of $2.5 million and $4.4 million, respectively, for severance pay and benefits primarily to rationalize the remaining Audio segment workforce as a direct result of the lower demand the Company is experiencing due to the COVID-19 pandemic.

During the three and six months ended June 30, 2020, the Company recorded total restructuring charges within Gross profit of $0.9 million and $2.3 million, respectively, primarily for fixed asset write-off costs and severance pay and benefits associated with the restructuring of the Intelligent Audio product line and other actions to rationalize the remaining Audio segment workforce. During the three and six months ended June 30, 2020, the Company also recorded total restructuring charges within Operating expenses of $6.5 million and $10.4 million, respectively, primarily for severance pay and benefits and contract termination costs associated with the restructuring of the Intelligent Audio product line and other actions to rationalize the remaining Audio segment workforce.

During the three and six months ended June 30, 2019, the Company recorded restructuring charges within Gross profit of $0.4 million and $0.9 million, respectively, primarily for actions associated with transferring certain operations of capacitors manufacturing to other existing facilities in order to further optimize operations in the PD segment. During the three and six months ended June 30, 2019, the Company also recorded restructuring charges within Operating expenses of $0.1 million and $1.9 million, respectively, primarily for actions associated with rationalizing the Audio segment workforce.

The following table details restructuring charges incurred by reportable segment for the periods presented:


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Audio	$	6.9	$	0.1	$	11.0	$	1.9
Precision Devices	—		0.4		—		0.7
Corporate	0.5		—		1.7		0.2
Total	$	7.4	$	0.5	$	12.7	$	2.8

The following table details the Company’s severance and other restructuring accrual activity:


(in millions)	Severance Pay and Benefits		Contract Termination and Other Costs		Total
Balance at December 31, 2019	$	1.4	$	—	$	1.4

Restructuring charges	9.7		1.2		10.9
Payments	(5.5)		(0.1)		(5.6)

Balance at June 30, 2020	$	5.6	$	1.1	$	6.7

The severance and restructuring accruals are recorded in the following line items on the Consolidated Balance Sheets:


(in millions)	June 30, 2020		December 31, 2019
Other accrued expenses	$	6.1	$	1.4
Other liabilities	0.6		—
Total	$	6.7	$	1.4