Restructuring

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In accordance with the applicable guidance for ASC 420, Exit or Disposal Cost Obligations, we recognized liabilities for the restructuring plans noted below when the programs were approved, the employees to be terminated were identified, the terms of the arrangement were established, it was determined changes to the plan were unlikely to occur and the arrangements were communicated to employees. The liabilities are recorded within Accrued expenses and other current liabilities in the Interim Condensed Consolidated Balance Sheets. The corresponding expenses are recorded within Restructuring and impairment in the Interim Consolidated Statements of Operations. The payments associated with these actions are expected to be completed within 12 months from the balance sheet date.

Operation Simplification and Optimization Program

During the fourth quarter of 2019, the Company approved restructuring actions designed to streamline our operations by simplifying our organization and focusing on two product groups in planned phases. The following table summarizes the activity related to the restructuring reserves for the Operation Simplification and Optimization Program:

Operation Simplification and Optimization Program	Severance and Related Benefit Costs		Costs Associated with Exit and Disposal Costs 1		Total
Reserve Balance as of December 31, 2019	$	9,506	$	—	$	9,506
Expenses recorded	6,574		1,180		7,754
Payments made	(6,647)		—		(6,647)
Reserve Balance as of March 31, 2020	9,433		1,180		10,613
Expenses recorded	4,865		2,749		7,614
Payments made	(4,297)		(199)		(4,496)
Reserve Balance as of June 30, 2020	$	10,001	$	3,730	$	13,731

¹Relates primarily to location exit costs and legal and advisory fees.

The following table is a summary of charges incurred related to the Operation Simplification and Optimization Program in the three and six months ended June 30, 2020.

	Three Months Ended June 30,
	2020		2019
Severance and related benefit costs	$	4,865	$	—
Costs associated with exit and disposal activities1	2,749		—
Costs associated with lease exit costs including impairment2	4,908		—
Total	$	12,522	$	—
	Six Months Ended June 30,
	2020		2019
Severance and related benefit costs	$	11,438	$	—
Costs associated with exit and disposal activities1	3,930		—
Costs associated with lease exit costs including impairment2	4,908		—
Total	$	20,276	$	—
1Relates primarily to contract exit costs and legal and advisory fees.
2Includes $4,771 of charges related to impairment of a lease and $137 of lease exit costs.

DRG Acquisition Integration Program

During the second quarter of 2020, the Company approved restructuring actions designed to eliminate duplicative costs following the acquisition of DRG in planned phases. The following table summarizes the activity related to the restructuring reserves for the DRG Acquisition Integration:

DRG Acquisition Integration	Severance and Related Benefit Costs		Costs Associated with Exit and Disposal Costs 1		Total
Reserve balance as of December 31, 2019	$	—	$	—	$	—
Expenses recorded	3,312		12		3,324
Payments made	(1,252)		—		(1,252)
Reserve balance as of June 30, 2020	$	2,060	$	12	$	2,072

¹Relates primarily to legal and advisory fees.

The following table is a summary of charges incurred related to the DRG Acquisition Integration in the three and six months ended June 30, 2020.

	Three Months Ended June 30,
	2020
Severance and related benefit costs	$	3,312
Costs associated with exit and disposal activities1	12
Total	$	3,324
	Six Months Ended June 30,
	2020
Severance and related benefit costs	$	3,312
Costs associated with exit and disposal activities1	12
Total	$	3,324
1Relates primary to legal and advisory fees.