RESTRUCTURING AND ASSET IMPAIRMENTS

9 Months Ended

Sep. 28, 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, accelerated depreciation charges, and certain other costs. Generally, these actions are 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 $30.6 million and $65.6 million during the three and nine months ended September 28, 2024, respectively and approximately $95 million since the beginning of fiscal year 2023 through September 28, 2024.

The following table presents restructuring costs by reportable segment:


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
	(in thousands)
RMS	$	4,965	$	965	$	22,580	$	965
DSA	13,866		13,220		24,123		13,218
Manufacturing	5,372		975		9,660		7,162
Unallocated corporate	6,443		—		9,237		—
Total	$	30,646	$	15,160	$	65,600	$	21,345

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


	September 28, 2024						September 30, 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)	$	12,830	$	3,482	$	16,312	$	2,160	$	11,418	$	13,578
Cost of products sold (excluding amortization of intangible assets)	1,783		650		2,433		480		174		654
Selling, general and administrative	11,923		(22)		11,901		937		(9)		928
Total restructuring costs	$	26,536	$	4,110	$	30,646	$	3,577	$	11,583	$	15,160

Nine Months Ended
Cost of services provided (excluding amortization of intangible assets)	$	20,510	$	6,516	$	27,026	$	5,088	$	11,418	$	16,506
Cost of products sold (excluding amortization of intangible assets)	2,530		11,134		13,664		534		2,920		3,454
Selling, general and administrative	18,430		6,480		24,910		1,386		(1)		1,385
Total restructuring costs	$	41,470	$	24,130	$	65,600	$	7,008	$	14,337	$	21,345

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)
Nine Months Ended September 28, 2024
Beginning balance	$	4,175	$	—	$	875	$	5,050
Expense	41,470		15,999		8,131		65,600
Payments / utilization	(17,920)		—		(6,762)		(24,682)
Other non-cash adjustments	—		(15,999)		(1,369)		(17,368)
Foreign currency adjustments	57		—		—		57
Ending Balance	$	27,782	$	—	$	875	$	28,657

Nine Months Ended September 30, 2023
Beginning balance	$	356	$	—	$	944	$	1,300
Expense	7,008		13,269		1,068		21,345
Payments / utilization	(3,179)		—		(710)		(3,889)
Other non-cash adjustments	—		(13,269)		(427)		(13,696)
Foreign currency adjustments	(42)		—		—		(42)
Ending Balance	$	4,143	$	—	$	875	$	5,018

As of September 28, 2024 and December 30, 2023, $28.7 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.