Restructuring and Asset Impairments

3 Months Ended

Mar. 29, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Contract Termination Costs

RESTRUCTURING AND ASSET IMPAIRMENTS

Facilities

North American Research Models

In the first quarter of 2014, we committed to a plan to close our research model production facility located in Michigan by the end of the 2014 and to reassign the sourcing of research models to other facilities in the U.S. As a result of these actions, we reviewed the long-lived assets of this asset group, consisting of land improvements, building and equipment, for potential impairment based on the undiscounted cash flows of the group and considered the potential redeployment and future utilization of the facility's machinery and equipment. Based on the results of this analysis, we recorded an asset impairment and other charges of $690. In addition, we recorded accelerated depreciation of$290 in the first quarter of 2014 reflecting the adjusted remaining useful life and estimated residual value of building and improvements. We anticipate that additional accelerated depreciation for 2014 will amount to approximately $840.

RMS Europe

In 2012, we commenced a consolidation of certain research model operations in Europe. As a result, we adjusted the carrying value of certain facilities impacted by the consolidation plan to fair value through an asset impairment charge in 2012. During the first quarter of 2014, we entered into a purchase and sale agreement to sell a facility impacted by the consolidation plan. The sale closed subsequent to our fiscal quarter end and will be reflected as a gain of approximately $800 in our second quarter financial statements.

Staffing Reductions

We have periodically implemented staffing reductions to improve operating efficiency and profitability at various sites. As a result of these actions, for the three months ended March 29, 2014 and March 30, 2013, we recorded severance and retention charges as shown below. As of March 29, 2014, $2,217 was included in accrued compensation and $1,330 in other long-term liabilities on our consolidated balance sheet.

The following table rolls forward our severance and retention cost liability:

	Three Months Ended
	March 29, 2014			March 30, 2013
Balance, beginning of period	$	2,782		$	3,636
Expense	1,900			297
Payments/utilization	(1,135		)	(498		)
Balance, end of period	$	3,547		$	3,435

The following table presents severance and retention costs by classification on the income statement:

	Three Months Ended
	March 29, 2014		March 30, 2013
Severance charges included in cost of sales	$	1,682	$	227
Severance charges included in selling, general and administrative expense	218		70
Total expense	$	1,900	$	297

The following table presents severance and retention cost by segment:

	Three Months Ended
	March 29, 2014		March 30, 2013
Research models and services	$	1,716	$	86
Preclinical services	63		211
Corporate	121		—
Total expense	$	1,900	$	297