Restructuring

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

In the first quarter of 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. Key activities under the Restructuring Plan include a continued focus on efficiency and cost-saving efforts, which includes decreasing total headcount by approximately 500 employees upon the completion of the Restructuring Plan.

On July 15, 2021, we entered into a manufacturing services agreement (the “Agreement”) with Sanmina Corporation (“Sanmina”), in connection with the Restructuring Plan. Under the Agreement, Sanmina will provide manufacturing services for the Company’s measurement device products currently manufactured by the Company at the Company’s Lake Mary, Florida, Exton, Pennsylvania, and Stuttgart, Germany manufacturing sites. A phased transition to a Sanmina production facility is expected to be completed by the end of the second quarter of 2022 as part of our cost reduction initiative. Additionally, all other activities under the Restructuring Plan are expected to be substantially completed by the end of the first half of 2022.

In connection with the Restructuring Plan, we paid $0.7 million during the three months ended March 31, 2022, primarily consisting of severance and related benefits. Since the approval of the Restructuring Plan, we have paid $19.6 million, primarily consisting of severance and related benefits. Activity related to the accrued restructuring charge and cash payments during the three months ended March 31, 2022 and March 31, 2021 was as follows:

	Severance and other benefits		Professional fees and other related charges		Total
Balance at December 31, 2021	$	3,442	$	477	$	3,919
Additions charged to expense	431		169		600
Cash payments	(458)		(216)		(674)
Balance at March 31, 2022	$	3,415	$	430	$	3,845
Balance at December 31, 2020	$	1,481	$	866	$	2,347
Additions charged to expense	1,043		481		1,524
Cash payments	(841)		(576)		(1,417)
Balance at March 31, 2021	$	1,683	$	771	$	2,454

We continue to evaluate our key initiatives and execution of the Restructuring Plan, and expect to incur additional pre-tax charges in the range of $3 million to $5 million through the end of fiscal year 2022. The Company expects to make cash payments of approximately $6 million in the remainder of fiscal year 2022, consisting of severance and related benefits.