RESTRUCTURING AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 29, 2024

Restructuring and Related Activities [Abstract]

The Company has undertaken restructuring actions impacting the reportable segments at various locations across North America, Europe and Asia. This includes workforce right-sizing actions resulting in severance and transition costs; and costs related to the consolidation of facilities resulting in asset impairment and accelerated depreciation charges. Generally, these actions are considered to be short-term in nature in response to recent macroeconomic impacts on the Company. During fiscal year 2023, the Company began to take restructuring actions as a result of these emerging business trends. The Company incurred restructuring charges of $18.0 million and $35.0 million during the three and six months ended June 29, 2024, respectively and approximately $65 million throughout fiscal year 2023 through June 29, 2024.

The following table presents restructuring costs by reportable segment:


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
	(in thousands)
RMS	$	10,228	$	—	$	17,615	$	—
DSA	3,766		—		10,257		(2)
Manufacturing	2,657		2,699		4,288		6,187
Unallocated corporate	1,304		—		2,794		—
Total	$	17,955	$	2,699	$	34,954	$	6,185

The following table presents restructuring costs as included within the Company’s unaudited condensed consolidated statements of income:


	June 29, 2024						July 1, 2023
	Severance and Transition Costs		Asset Impairments and Other Costs		Total		Severance and Transition Costs		Asset Impairments and Other Costs		Total
	(in thousands)
Three Months Ended
Cost of services provided (excluding amortization of intangible assets)	$	2,870	$	1,926	$	4,796	$	2,361	$	—	$	2,361
Cost of products sold (excluding amortization of intangible assets)	69		9,154		9,223		36		182		218
Selling, general and administrative	2,958		978		3,936		120		—		120
Total restructuring costs	$	5,897	$	12,058	$	17,955	$	2,517	$	182	$	2,699

Six Months Ended
Cost of services provided (excluding amortization of intangible assets)	$	7,680	$	3,034	$	10,714	$	2,928	$	—	$	2,928
Cost of products sold (excluding amortization of intangible assets)	747		10,484		11,231		54		2,746		2,800
Selling, general and administrative	6,507		6,502		13,009		449		8		457
Total restructuring costs	$	14,934	$	20,020	$	34,954	$	3,431	$	2,754	$	6,185

Rollforward of Restructuring Activities

The following table provides a rollforward for the Company’s accrued restructuring costs related to all restructuring activities:


	Severance and Transition Costs		Asset Impairments		Other Costs		Total
	(in thousands)
Six Months Ended June 29, 2024
Beginning balance	$	4,175	$	—	$	875	$	5,050
Expense	14,934		14,181		5,839		34,954
Payments / utilization	(9,323)		—		(5,067)		(14,390)
Other non-cash adjustments	—		(14,181)		(772)		(14,953)
Foreign currency adjustments	(57)		—		—		(57)
Ending Balance	$	9,729	$	—	$	875	$	10,604

Six Months Ended July 1, 2023
Beginning balance	$	356	$	—	$	944	$	1,300
Expense	3,431		2,479		275		6,185
Payments / utilization	(811)		—		(303)		(1,114)
Other non-cash adjustments	—		(2,479)		—		(2,479)
Foreign currency adjustments	9		—		—		9
Ending Balance	$	2,985	$	—	$	916	$	3,901

As of June 29, 2024 and December 30, 2023, $10.6 million and $5.1 million, respectively, of severance and other personnel related costs liabilities were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets.