Restructuring Charges

6 Months Ended

Jul. 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
	July 1, 2023								July 2, 2022
	Supply Chain Reinvention		HRA Pharma Integration		Other Initiatives		Total		Total
Beginning balance	$	0.4	$	11.8	$	3.4	$	15.6	$	8.2
Additional charges	1.4		1.2		4.1		6.7		9.5
Payments	(1.8)		(3.5)		(4.0)		(9.3)		(3.9)
Non-cash adjustments	—		0.1		0.3		0.4		(0.3)

Ending balance	$	—	$	9.6	$	3.8	$	13.4	$	13.5


	Six Months Ended
	July 1, 2023								July 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	3.9		2.1		4.2		10.2		13.1
Payments	(6.1)		(6.1)		(5.1)		(17.3)		(6.0)
Non-cash adjustments	—		0.3		0.4		0.7		(0.5)
Ending balance	$	—	$	9.6	$	3.8	$	13.4	$	13.5

The charges incurred during the three and six months ended July 1, 2023 and July 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 $14.7 million of cumulative restructuring expense to date related to HRA Pharma integration. We expect that most of the HRA Pharma restructuring expenses will be incurred by the end of 2023.

Of the amount recorded during the three and six months ended July 1, 2023, $4.6 million and $6.7 million was related to our CSCI segment, due primarily to supply chain restructuring, and HRA Pharma integration initiatives, and $1.1 million and $2.4 million related to our CSCA segment, also due primarily to supply chain restructuring initiatives. The amount recorded during the three and six months ended July 2, 2022 related to our Unallocated segment and was 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 $13.4 million liability for employee severance benefits and consulting fees is expected to be mostly paid within the next year.