RESTRUCTURING

3 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

3. RESTRUCTURING

On an ongoing basis, the Company reviews the global economy, the healthcare industry, and the markets in which it competes to identify opportunities for efficiencies, enhance commercial capabilities, align its resources and offer its customers better solutions. In order to realize these opportunities, the Company undertakes restructuring-type activities to transform its business.

In July 2019, the Board of Directors of the Company approved the Operational Excellence Program (the “2020 Program”) and delegated authority to the Company's management to determine the detail of the initiatives that will comprise the program. During the first quarter of fiscal 2022, the Company revised the program to improve product and service quality, reduce cost principally in its manufacturing and supply chain operations and ensure sustainability while helping to offset impacts from a previously announced customer loss, rising inflationary pressures and effects of the COVID-19 pandemic. The Company now expects to incur aggregate charges between $95 million and $105 million by the end of fiscal 2025. The majority of charges will result in cash outlays, including severance and other employee costs, and will be incurred as the specific actions required to execute these initiatives are identified and approved. During the three months ended July 3, 2021 and June 27, 2020, the Company incurred $9.9 million and $3.5 million, respectively, of restructuring and restructuring related costs under this program. Total cumulative charges under this program are $36.9 million.

The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the three months ended July 3, 2021, substantially all of which relates to employee severance and other employee costs:


(In thousands)	2020 Program		Prior Programs		Total
Balance at April 3, 2021	$	575	$	437	$	1,012
Costs incurred, net of reversals	3,391		29		3,420
Payments	(63)		—		(63)
Non-cash adjustments	—		11		11
Balance at July 3, 2021	$	3,903	$	477	$	4,380

The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income:


	Three Months Ended
(In thousands)	July 3, 2021		June 27, 2020
Cost of goods sold	$	2,253	$	503
Research and development	105		319
Selling, general and administrative expenses	1,062		243
	$	3,420	$	1,065

As of July 3, 2021, the Company had a restructuring liability of $4.4 million, of which $3.9 million is payable within the next twelve months.

In addition to the restructuring costs included in the table above, the Company also incurred costs that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as restructuring related costs. These costs consist primarily of expenditures directly related to the restructuring actions and include program management costs associated with the implementation of outsourcing initiatives and recent accounting standards.

The tables below present restructuring and restructuring related costs by reportable segment:


Restructuring costs	Three Months Ended
(In thousands)	July 3, 2021		June 27, 2020
Plasma	$	2,288	$	568
Blood Center	3		154
Hospital	(38)		129
Corporate	1,167		214
Total	$	3,420	$	1,065

Restructuring related costs	Three Months Ended
(In thousands)	July 3, 2021		June 27, 2020
Plasma	$	1,738	$	—
Blood Center	490		16
Hospital	133		9
Corporate	4,274		2,910
Total	$	6,635	$	2,935

Total restructuring and restructuring related costs	$	10,055	$	4,000