Severance, Restructuring, and Acquisition Integration Activities

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Severance, Restructuring, and Acquisition Integration Activities

Opterna and FutureLink Integration program: 2019

In 2019, we began a restructuring program to integrate Opterna and FutureLink with our existing businesses. The restructuring and integration activities are focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We recognized $2.5 million of severance and other restructuring costs for this program during the three and six months ended June 30, 2019. These costs were incurred by the Enterprise Solutions segment. We expect to incur approximately $3.0 million of additional severance and restructuring costs for this program, most of which will be incurred by the end of 2019.

Grass Valley and SAM Integration Program: 2018 - 2019

In 2018, we began a restructuring program to integrate SAM with Grass Valley. The restructuring and integration activities are focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We did not recognize severance and other restructuring costs for this program during the three months ended June 30, 2019 and we recognized $3.0 million of severance and other restructuring costs for this program during the six months ended June 30, 2019. We recognized $20.3 million and $29.5 million of severance and other restructuring costs for this program during the three and six months ended July 1, 2018, respectively. The costs were incurred by the Enterprise Solutions segment. We do not expect to incur any more costs for this program.

Industrial Manufacturing Footprint Program: 2016 - 2018

In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation was complete as of December 31, 2018. We recognized $3.9 million and $11.4 million of severance and other restructuring costs for this program during the three and six months ended July 1, 2018. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms.

The following table summarizes the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities:



	Severance		Other Restructuring and Integration Costs		Total Costs

Three Months Ended June 30, 2019	(In thousands)
Enterprise Solutions	$	—	$	3,082	$	3,082
Industrial Solutions	—		—		—
Total	$	—	$	3,082	$	3,082

Three Months Ended July 1, 2018
Enterprise Solutions	$	10,872	$	12,015	$	22,887
Industrial Solutions	190		1,851		2,041
Total	$	11,062	$	13,866	$	24,928

Six Months Ended June 30, 2019
Enterprise Solutions	$	220	$	6,640	$	6,860
Industrial Solutions	—		—		—
Total	$	220	$	6,640	$	6,860

Six Months Ended July 1, 2018
Enterprise Solutions	$	11,380	$	26,041	$	37,421
Industrial Solutions	242		7,659		7,901
Total	$	11,622	$	33,700	$	45,322

The following table summarizes the costs of the various programs described above as well as other immaterial programs and acquisition integration activities by financial statement line item in the Condensed Consolidated Statement of Operations:



	Three Months ended				Six Months Ended
	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018

	(In thousands)
Cost of sales	$	423	$	7,231	$	985	$	16,662
Selling, general and administrative expenses	2,333		14,544		5,112		23,946
Research and development expenses	326		3,153		763		4,714
Total	$	3,082	$	24,928	$	6,860	$	45,322

The other restructuring and integration costs primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days.

There were no significant severance accrual balances as of June 30, 2019 or December 31, 2018.