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Restructuring, Acquisition, and Related Costs
3 Months Ended
Mar. 29, 2024
Restructuring and Related Activities [Abstract]  
Restructuring, Acquisition, and Related Costs

14. Restructuring, Acquisition, and Related Costs

The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands):

 

Three Months Ended

 

 

March 29,

 

 

March 31,

 

 

2024

 

 

2023

 

2024 restructuring

$

548

 

 

$

 

2022 restructuring

 

 

 

 

2,197

 

2020 restructuring

 

 

 

 

274

 

Total restructuring charges

 

548

 

 

 

2,471

 

Acquisition and related charges

 

1,735

 

 

 

5

 

Total restructuring, acquisition, and related costs

$

2,283

 

 

$

2,476

 

2024 Restructuring

As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the three months ended March 29, 2024, the Company recorded $0.5 million in severance, facility related, and other charges in connection with the 2024 restructuring program. As of March 29, 2024, the Company had incurred cumulative costs of $0.5 million related to this restructuring plan. The Company anticipates substantially completing the 2024 restructuring program by the end of 2024 and expects to incur additional restructuring charges of $4.5 million to $5.5 million related to the 2024 restructuring program.

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Three Months Ended

 

 

March 29,

 

 

March 31,

 

 

2024

 

 

2023

 

Precision Medicine and Manufacturing

$

35

 

 

$

 

Medical Solutions

 

206

 

 

 

 

Robotics and Automation

 

244

 

 

 

 

Unallocated Corporate and Shared Services

 

63

 

 

 

 

Total

$

548

 

 

$

 

2022 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. The Company did not incur any costs related to the 2022 restructuring plan during the three months ended March 29, 2024. As of December 31, 2023, the Company had incurred cumulative costs related to this restructuring program totaling $10.4 million. The 2022 restructuring program was completed in the fourth quarter of 2023.

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. The Company did not incur any costs related to the 2020 restructuring plan during the three months ended March 29, 2024. As of December 31, 2023, the Company had recorded an aggregate $16.7 million in severance, facilities related costs, and other costs in connection with the 2020 restructuring program. The 2020 restructuring program was completed in the fourth quarter of 2023.

Rollforward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Other

 

Balance at December 31, 2023

$

2,850

 

 

$

1,038

 

 

$

1,680

 

 

$

132

 

Restructuring charges

 

548

 

 

 

440

 

 

 

64

 

 

 

44

 

Cash payments

 

(1,113

)

 

 

(495

)

 

 

(438

)

 

 

(180

)

Non-cash write-offs and other adjustments

 

(39

)

 

 

(10

)

 

 

(33

)

 

 

4

 

Balance at March 29, 2024

$

2,246

 

 

$

973

 

 

$

1,273

 

 

$

 

Acquisition and Related Charges

Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $1.7 million for the three months ended March 29, 2024 and less than $0.1 million for the three months ended March 31, 2023. The majority of acquisition and related costs for the three months ended March 29, 2024 and the three months ended March 31, 2023 were included in the Company’s unallocated Corporate and Shared Services reportable segment.