Restructuring and Exit Activity Costs

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

(15) Restructuring and Exit Activity Costs

In June 2022, we notified one of our contract manufacturers of our intention to terminate the manufacturing services agreement and in-source the printer assembly and production in July 2022. In connection with the termination, we incurred a $1,670 exit fee which was accrued as of June 30, 2022 and paid in July 2022. The expense was recorded in selling, general and administrative as part of general corporate expenses. Additionally, we had a commitment to purchase $23,913 of inventory and $369 of fixed assets from the contract manufacturer which was paid in July of 2022. Part of the inventory purchased was prepaid during previous quarters for $8,892 which resulted in a net cash payment of $17,060 in July 2022.

On August 5, 2020, we announced, in connection with the new strategic focus, a restructuring plan intended to align our operating costs with current revenue levels and to better position the Company for future sustainable and profitable growth. The restructuring plan included a reduction of nearly 20% of our workforce, with the majority of the workforce reduction completed by December 31, 2020. We completed the restructuring efforts in the second quarter of 2021. Cost reduction efforts included reducing the number of facilities and examining every aspect of our manufacturing and operating costs. We incurred cash charges for severance, facility closing and other costs, primarily in the second half of 2020, and continued to incur additional charges through the second quarter of 2021, when we finalized all the actions to be taken. We also divested parts of the business that did not align with this strategic focus. See Note 2.


(in thousands)	Costs Incurred During 2020		Costs Incurred During the Nine Months Ended September 30, 2021		Total Costs Incurred Through September 30, 2021
Severance, termination benefits and other employee costs	$	12,914	$	660	$	13,574
Facility closing costs	6,470		640		7,110
Other costs	668		(179)		489
Total	$	20,052	$	1,121	$	21,173

The liabilities at September 30, 2021 related to these costs were principally recorded in accrued expenses in the condensed consolidated balance sheets and were as follows:


(in thousands)	Balance at December 31, 2020		Costs Incurred During the Nine Months Ended September 30, 2021		Cost Paid During 2021		Non-cash Adjustments		Liability at September 30, 2021
Severance, termination benefits and other employee costs	$	7,173	$	660	$	(7,833)	$	—	$	—
Facility closing costs	—		640		(640)		—		—
Other costs	—		(179)		—		179		—
Total	$	7,173	$	1,121	$	(8,473)	$	179	$	—