RESTRUCTURING AND ASSET IMPAIRMENTS

Global Restructuring Initiatives

In recent fiscal years, the Company has undertaken productivity improvement initiatives within all reportable segments at various locations across the U.S., Europe, and Japan. This includes workforce right-sizing and scalability initiatives, resulting in severance and transition costs; and cost related to the consolidation of facilities, resulting in asset impairment and accelerated depreciation charges. The Company’s existing lease obligations for certain facilities continue through various dates, the latest being 2028.

The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income.



	Three Months Ended
	March 30, 2019						March 31, 2018
	Severance and Transition Costs		Asset Impairments and Other Costs		Total		Severance and Transition Costs		Asset Impairments and Other Costs		Total
	(in thousands)
Cost of services provided and products sold (excluding amortization of intangible assets)	$	267	$	1,149	$	1,416	$	563	$	22	$	585
Selling, general and administrative	133		—		133		53		—		53
Total	$	400	$	1,149	$	1,549	$	616	$	22	$	638

The following table presents restructuring costs by reportable segment for these productivity improvement initiatives:



	Three Months Ended
	March 30, 2019		March 31, 2018
	(in thousands)
RMS	301		—
DSA	$	13	$	(232	)
Manufacturing	1,235		870
Total	$	1,549	$	638

2017 RMS Restructuring Initiative

In the fourth quarter of fiscal year 2017, the Company committed to a plan to further reduce costs and improve operating efficiencies in its RMS reportable segment. The plan included ceasing production within the Company’s facility in Maryland and reducing its workforce at certain RMS facilities during 2018.

The following table presents a summary of severance and transition costs, and asset impairments (referred to as restructuring costs) during the three months ended March 31, 2018 related to this initiative within the unaudited condensed consolidated statements of income. The Company did not incur any restructuring costs in the three months ended March 30, 2019.



	Three Months Ended
	March 31, 2018
	Severance and Transition Costs		Asset Impairments and Other Costs		Total

Cost of services provided and products sold (excluding amortization of intangible assets)	$	353	$	515	$	868
Selling, general and administrative	170		—		170
Total	$	523	$	515	$	1,038

Cumulative restructuring costs incurred during 2017 and 2018 were $20.1 million, which primarily related to non-cash asset impairments and accelerated depreciation charges of $17.7 million and cash payments for severance and transition costs of $1.2 million and were recorded in the RMS reportable segment. Substantially all severance and transition costs have been paid as of March 30, 2019 and no further restructuring costs related to the 2017 RMS Restructuring Initiative are expected to be incurred.

The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to all restructuring activities:



	Three Months Ended
	March 30, 2019			March 31, 2018
	(in thousands)
Beginning balance	$	2,921		$	6,856
Expense	1,246			1,139
Payments / utilization	(2,034		)	(1,149		)
Foreign currency adjustments	(20		)	207
Ending balance	$	2,113		$	7,053

As of March 30, 2019 and March 31, 2018, 1.8 million and $3.1 million of severance and other personnel related costs liabilities and lease obligation liabilities, respectively, were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets and $0.3 million and $3.9 million, respectively, were included in other long-term liabilities within the Company’s unaudited condensed consolidated balance sheets.