Restructuring Charges

3 Months Ended

Apr. 01, 2023

RESTRUCTURING CHARGES

We periodically take action to reduce redundant expenses and improve operating efficiencies. Restructuring activity includes severance, lease exit costs, and related consulting fees. The following reflects our restructuring activity (in millions):


	Three Months Ended
	April 1, 2023								April 2, 2022
	Supply Chain Reinvention		HRA Pharma Integration		Other Initiatives		Total		Total
Beginning balance	$	2.2	$	13.3	$	4.3	$	19.8	$	6.9
Additional charges	2.6		0.8		$	—	3.4		3.6
Payments	(4.4)		(2.6)		$	(1.0)	(8.0)		(2.1)
Non-cash adjustments	—		0.3		$	0.1	0.4		(0.2)

Ending balance	$	0.4	$	11.8	$	3.4	$	15.6	$	8.2

The charges incurred during the three months ended April 1, 2023 and April 2, 2022 were primarily associated with actions taken on our multi-year supply chain restructuring program initiative started in 2022, and HRA Pharma integration activities associated with employee separation, continuity and other benefit-related costs. We have incurred $13.5 million of cumulative restructuring expense to date related to HRA Pharma integration. We expect that most of the HRA Pharma integration expenses will be incurred by the end of 2023.

Of the amount recorded during the three months ended April 1, 2023, $0.9 million was related to our CSCI segment, due primarily to supply chain restructuring and HRA Pharma integration initiatives, and $1.2 million related to our CSCA segment, also due primarily to supply chain restructuring initiatives. Remaining amounts recorded, including $3.6 million recorded during the three months ended April 2, 2022, related to our Unallocated segment due primarily to supply chain restructuring.

There were no other material restructuring programs for the periods presented. All charges are recorded in Restructuring expense on the Condensed Consolidated Statements of Operations. The remaining $15.6 million liability for employee severance benefits and consulting fees is expected to be paid within the next year.