RESTRUCTURING AND ASSET IMPAIRMENTS

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities [Abstract]

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., Canada, Europe, China, 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 does not have any significant remaining lease obligations for facilities associated with restructuring activities.

The following table presents a summary of restructuring costs related to these initiatives by classification within the consolidated statements of income:



	Severance and Transition Costs		Asset Impairments and Other Costs		Total
	(in thousands)
December 28, 2019
Cost of services provided and products sold (excluding amortization of intangible assets)	$	4,348	$	2,367	$	6,715
Selling, general and administrative	7,106		18		7,124
Total	$	11,454	$	2,385	$	13,839
December 29, 2018
Cost of services provided and products sold (excluding amortization of intangible assets)	$	923	$	27	$	950
Selling, general and administrative	6,597		21		6,618
Total	$	7,520	$	48	$	7,568
December 30, 2017
Cost of services provided and products sold (excluding amortization of intangible assets)	$	1,944	$	929	$	2,873
Selling, general and administrative	1,905		—		1,905
Total	$	3,849	$	929	$	4,778

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



	Fiscal Year
	2019		2018		2017
	(in thousands)
RMS	$	3,110	$	—	$	291
DSA	7,307		1,063		1,604
Manufacturing	3,032		1,227		2,883
Unallocated corporate	390		5,278		—
Total	$	13,839	$	7,568	$	4,778

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 various global RMS facilities during 2018. On August 1, 2018, the Company’s Board of Directors approved a modification to the plan which repurposed the facility in Maryland to be used for alternative initiatives. The Company’s existing lease obligation continues through 2028 and the Company expects to remain in the facility for the duration of the lease term.

The following table presents a summary of severance and transition costs, and asset impairments (referred to as restructuring costs) related to this initiative during fiscal years 2018 and 2017 by classification within the consolidated statements of income. The Company did not incur any restructuring costs during fiscal year December 28, 2019.



	Severance and Transition Costs		Asset Impairments and Other Costs		Total
	(in thousands)
December 29, 2018
Cost of services provided and products sold (excluding amortization of intangible assets)	$	847	$	822	$	1,669
Selling, general and administrative	314		—		314
Total	$	1,161	$	822	$	1,983
December 30, 2017
Cost of services provided and products sold (excluding amortization of intangible assets)	$	362	$	17,716	$	18,078
Selling, general and administrative	67		—		67
Total	$	429	$	17,716	$	18,145

Restructuring costs incurred during 2017 were $18.1 million, which primarily related to non-cash asset impairments and accelerated depreciation charges of $17.7 million. The costs incurred during 2018 were $2.0 million, which primarily related to cash payments for severance and transition costs of $1.2 million. All of the costs are recorded in the RMS reportable segment. All severance and transition costs have been paid as of December 28, 2019 and no further restructuring costs related to the 2017 RMS Restructuring Initiative are expected to be incurred.

Rollforward of restructuring activities

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



	Fiscal Year
	2019			2018			2017
	(in thousands)
Beginning balance	$	2,921		$	6,856		$	8,102
Expense (excluding non-cash charges)	12,674			8,681			4,278
Payments / utilization	(9,206		)	(12,341		)	(6,103		)
Foreign currency adjustments	17			(275		)	579
Ending balance	$	6,406		$	2,921		$	6,856

As of December 28, 2019 and December 29, 2018, $6.3 million and $2.4 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 consolidated balance sheets and $0.1 million and $0.5 million, respectively, were included in other long-term liabilities within the Company's consolidated balance sheets.