Severance, Restructuring, and Acquisition Integration Activities

9 Months Ended

Sep. 29, 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 were focused on achieving desired cost savings by consolidating existing and acquired facilities and other support functions. We recognized $3.1 million and $5.6 million of severance and other restructuring costs for this program during the three and nine months ended September 29, 2019, respectively. These costs were incurred by the Enterprise Solutions segment. We do not expect to incur any more costs for this program.

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 were 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 September 29, 2019, and we recognized $3.0 million of severance and other restructuring costs for this program during the nine months ended September 29, 2019. We recognized $7.1 million and $36.6 million of severance and other restructuring costs for this program during the three and nine months ended September 30, 2018, respectively. The costs were incurred by the Enterprise Solutions segment. The integration of these businesses is complete, and thus, 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 $4.3 million and $15.8 million of severance and other restructuring costs for this program during the three and nine months ended September 30, 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 September 29, 2019	(In thousands)
Enterprise Solutions	$	269		$	3,776	$	4,045
Industrial Solutions	—			—		—
Total	$	269		$	3,776	$	4,045

Three Months Ended September 30, 2018
Enterprise Solutions	$	(1,283	)	$	10,811	$	9,528
Industrial Solutions	136			2,024		2,160
Total	$	(1,147	)	$	12,835	$	11,688

Nine Months Ended September 29, 2019
Enterprise Solutions	$	489		$	10,415	$	10,904
Industrial Solutions	—			—		—
Total	$	489		$	10,415	$	10,904

Nine Months Ended September 30, 2018
Enterprise Solutions	$	10,097		$	36,852	$	46,949
Industrial Solutions	378			9,683		10,061
Total	$	10,475		$	46,535	$	57,010

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				Nine Months Ended
	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018

	(In thousands)
Cost of sales	$	792	$	4,820	$	1,777	$	21,482
Selling, general and administrative expenses	3,253		6,341		8,364		30,287
Research and development expenses	—		527		763		5,241
Total	$	4,045	$	11,688	$	10,904	$	57,010

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 September 29, 2019 or December 31, 2018.