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Other Charges, Net
 9 Months Ended
Sep. 30, 2017
Other Charges, Net  
Other Charges, Net

 

14.Other Charges, Net

 

The components of other charges, net were as follows (in millions):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Information technology transformation costs

 

$
0.8

 

$
1.6

 

$
2.9

 

$
5.5

 

Restructuring charges

 
3.0

 
2.8

 
6.9

 
6.4

 

Acquisition-related charges

 
0.5

 
0.2

 
3.8

 
8.1

 

Other

 

—

 

—

 
0.2

 
0.6

 

 

 

 

 

 

 

 

 

 

 

Other charges, net

 

$
4.3

 

$
4.6

 

$
13.8

 

$
20.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring Initiatives

 

2016

 

The Company commenced a restructuring initiative in the third quarter of 2016 to address lower demand in the Bruker CALID and Bruker Nano Groups as a result of softness in order entry levels from European academic institutions and ongoing weakness in several of the industrial end market segments served by the Bruker Nano Group.  This initiative was intended to improve the Bruker CALID Group and Bruker Nano Group operating results in response to these market conditions.  Restructuring actions resulted in a reduction of approximately 125 employees within the Bruker CALID and Bruker Nano Groups.

 

The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2017 and 2016:

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Three and Nine months ended September 30,

 

 

 

2017

 

2017

 

2016

 

 

 

Severance and
Exit Costs

 

Inventory
Writedown
and Asset
Impairment

 

Total

 

Severance and
Exit Costs

 

Inventory
Writedown
and Asset
Impairment

 

Total

 

Severance and
Exit Costs

 

Inventory
Writedown
and Asset
Impairment

 

Total

 

Cost of revenues

 

$
1.1

 

$
0.2

 

$
1.3

 

$
3.0

 

$
0.5

 

$
3.5

 

$
3.0

 

$
0.5

 

$
3.5

 

Other charges, net

 
0.8

 

—

 
0.8

 
2.4

 

—

 
2.4

 
2.4

 
0.2

 
2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
1.9

 

$
0.2

 

$
2.1

 

$
5.4

 

$
0.5

 

$
5.9

 

$
5.4

 

$
0.7

 

$
6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total restructuring and other one-time charges incurred through September 30, 2017 related to this initiative were $16.3 million, of which $13.2 million related to employee separation and facility exit costs and $3.1 million related to estimated inventory write-downs and asset impairments. Total restructuring and other one-time charges related to this initiative in 2016 and 2017 are expected to be between $17.0 and $19.0 million, of which $16.0 to $17.5 million relate to employee separation and facility exit costs and $1.0 to $1.5 million relate to estimated inventory write-downs and asset impairments.

 

2015

 

The Company commenced a restructuring initiative in 2015 within the Bruker BioSpin Group, which was developed as a result of a revenue decline that occurred during the second half of 2014 and continued during the first half of 2015. This initiative was intended to improve Bruker BioSpin Group’s operating results.  Restructuring actions resulted in a reduction of employee headcount within the Bruker BioSpin Group of approximately 9%. The expenses and gain related to the sale of a manufacturing facility in connection with this initiative were incurred in the nine months ended September 30, 2017.

 

The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income for the nine months ended September 30, 2017 and 2016, respectively:

 

 

 

Nine months ended September 30,

 

 

 

2017

 

2016

 

 

 

Severance and
Exit Costs

 

Inventory
Writedown
and Asset
Impairment

 

Total

 

Severance and
Exit Costs

 

Inventory
Writedown
and Asset
Impairment

 

Total

 

Cost of revenues

 

$
(2.7

)

$

—

 

$
(2.7

)

$
2.2

 

$

—

 

$
2.2

 

Other charges, net

 

—

 

—

 

—

 
1.1

 

—

 
1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
(2.7

)

$

—

 

$
(2.7

)

$
3.3

 

$

—

 

$
3.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2017, expenses incurred under this restructuring initiative were substantially complete. There were no restructuring expenses incurred for this program in the three months ended September 30, 2017 or 2016.

 

Other Programs

 

Restructuring charges for the three and nine month periods ended September 30, 2017 and 2016 included charges for various other programs which were recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income.

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Cost of revenues

 

$
0.3

 

$
1.0

 

$
0.8

 

$
0.7

 

Other charges, net

 
2.2

 
0.2

 
4.5

 
2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

$
2.5

 

$
1.2

 

$
5.3

 

$
3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth the changes in restructuring reserves for the nine months ended September 30, 2017 (in millions):

 

 

 

Total

 

Severance

 

Exit Costs

 

Provisions
for Excess
Inventory

 

Balance at December 31, 2016

 

$
16.2

 

$
4.9

 

$
3.7

 

$
7.6

 

Restructuring charges

 
8.6

 
6.4

 
2.1

 
0.1

 

Cash payments

 
(12.7

)
(7.9

)
(4.6

)
(0.2

)

Other, non-cash adjustments and foreign currency effect

 
(1.7

)
(0.1

)
(0.3

)
(1.3

)

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2017

 

$
10.4

 

$
3.3

 

$
0.9

 

$
6.2