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Restructuring and Contract Termination Charges, Net
12 Months Ended
Jan. 03, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Contract Termination Charges, Net
Restructuring and Contract Termination Charges, Net

The Company's management has approved a series of restructuring actions related to the impact of acquisitions and divestitures, the alignment of the Company's operations with its growth strategy, the integration of its business units and productivity initiatives. The current portion of restructuring and contract termination charges is recorded in accrued restructuring and contract termination charges and the long-term portion of restructuring and contract termination charges is recorded in long-term liabilities. The activities associated with these plans have been reported as restructuring and contract termination charges, net, and are included as a component of operating expenses from continuing operations.

The Company implemented restructuring plans in the fourth quarter of fiscal year 2015, the second and first quarters of fiscal year 2014, and the first quarter of fiscal year 2013 consisting of workforce reductions and the closure of excess facility space principally intended to focus resources on higher growth end markets (the "Q4 2015 Plan", "Q2 2014 Plan", "Q1 2014 Plan" and "Q1 2013 Plan", respectively). The Company implemented restructuring plans in the second quarter of fiscal year 2015 and the third quarter of fiscal year 2014 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q2 2015 Plan" and "Q3 2014 Plan", respectively). The Company implemented restructuring plans in the fourth and third quarters of fiscal year 2013 consisting of workforce reductions and the closure of excess facility space principally intended to shift certain of the Company's research and development resources into the Company's newly opened Center for Innovation (the "Q4 2013 Plan" and "Q3 2013 Plan", respectively). The Company implemented a restructuring plan in the second quarter of fiscal year 2013 consisting of workforce reductions and the closure of excess facility space principally intended to shift certain of the Company's operations into a newly established shared service center, as well as realign operations, research and development resources, and production resources as a result of previous acquisitions (the "Q2 2013 Plan"). All other previous restructuring plans were workforce reductions or the closure of excess facility space principally intended to integrate the Company's businesses in order to realign operations, reduce costs, achieve operational efficiencies and shift resources into geographic regions and end markets that are more consistent with the Company's growth strategy (the "Previous Plans").

The following table summarizes the number of employees reduced, the initial restructuring or contract termination charges by operating segment, and the dates by which payments were substantially completed, or the expected dates by which payments will be substantially completed, for restructuring actions implemented during fiscal years 2015, 2014 and 2013:
 
Workforce Reductions
 
Closure of Excess Facility
 
Total
 
(Expected) Date Payments Substantially Completed by
 
Headcount Reduction
 
Human Health
 
Environmental Health
 
Human Health
 
Environmental Health
 
 
Severance
 
Excess Facility
 
(In thousands, except headcount data)
 
 
 
 
Q4 2015 Plan
174

 
$
2,230

 
$
9,065

 
$
285

 
$

 
$
11,580

 
Q1 FY2017
 
Q4 FY2017
Q2 2015 Plan
97

 
1,850

 
4,160

 

 

 
6,010

 
Q2 FY2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2014 Plan
152

 
7,126

 
5,925

 

 

 
13,051

 
Q4 FY2015
 
Q2 2014 Plan
22

 
545

 
190

 

 

 
735

 
Q2 FY2015
 
Q1 2014 Plan
17

 
370

 
197

 

 

 
567

 
Q4 FY2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2013 Plan
73

 
955

 
2,953

 
7,271

 

 
11,179

 
Q4 FY2014
 
Q1 FY2019
Q3 2013 Plan
29

 
394

 

 
138

 

 
532

 
Q1 FY2014
 
Q4 FY2013
Q2 2013 Plan(1)
264

 
9,523

 
8,609

 
522

 
50

 
18,704

 
Q4 FY2014
 
Q3 FY2014
Q1 2013 Plan
62

 
2,340

 
245

 

 

 
2,585

 
Q3 FY2013
 
____________________________
(1) 
Subsequent to the initial charge, during fiscal year 2013, the Company recorded an additional $0.6 million pre-tax restructuring charge in the Human Health segment for the Q2 2013 Plan for services that were provided for one-time termination benefits in which the employee was required to render service beyond the legal notification period.

The Company expects to make payments under the Previous Plans for remaining residual lease obligations, with terms varying in length, through fiscal year 2022.

The Company also has terminated various contractual commitments in connection with certain disposal activities and has recorded charges, to the extent applicable, for the costs of terminating these contracts before the end of their terms and the costs that will continue to be incurred for the remaining terms without economic benefit to the Company. The Company recorded additional pre-tax charges of $0.1 million, $1.5 million and $0.7 million in the Environmental Health segment during fiscal years 2015, 2014 and 2013, respectively, as a result of these contract terminations.

At January 3, 2016, the Company had $22.2 million recorded for accrued restructuring and contract termination charges, of which $17.1 million was recorded in short-term accrued restructuring and $5.1 million was recorded in long-term liabilities. At December 28, 2014, the Company had $23.8 million recorded for accrued restructuring and contract termination charges, of which $17.1 million was recorded in short-term accrued restructuring and $6.7 million was recorded in long-term liabilities. The following table summarizes the Company's restructuring accrual balances and related activity by restructuring plan, as well as contract termination accrual balances and related activity, during fiscal years 2015, 2014 and 2013:

 
Balance at December 30, 2012
 
2013 Charges and Changes in Estimates, Net
 
2013 Amounts Paid
 
Balance at December 29, 2013
 
2014 Charges and Changes in Estimates, Net
 
2014 Amounts Paid
 
Balance at December 28, 2014
 
2015 Charges and Changes in Estimates, Net
 
2015 Amounts Paid
 
Balance at January 3, 2016
 
(In thousands)
Severance:
Q4 2015 Plan
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
11,295

 
$
(925
)
 
$
10,370

Q2 2015 Plan(1)

 

 

 

 

 

 

 
5,471

 
(4,322
)
 
1,149

Q3 2014 Plan(2)

 

 

 

 
13,051

 
(2,992
)
 
10,059

 
(3,064
)
 
(5,460
)
 
1,535

Q2 2014 Plan(3)

 

 

 

 
735

 
(484
)
 
251

 
(179
)
 
(13
)
 
59

Q1 2014 Plan(4)

 

 

 

 
567

 
(475
)
 
92

 
(92
)
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facility:
Q4 2015 Plan

 

 

 

 

 

 

 
285

 
(26
)
 
259

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previous Plans including 2013 plans(5)
27,151

 
33,196

 
(25,112
)
 
35,235

 
(2,508
)
 
(19,603
)
 
13,124

 
(209
)
 
(4,222
)
 
8,693

Restructuring
27,151

 
33,196

 
(25,112
)
 
35,235

 
11,845

 
(23,554
)
 
23,526

 
13,507

 
(14,968
)
 
22,065

Contract Termination
596

 
696

 
(992
)
 
300

 
1,545

 
(1,541
)
 
304

 
83

 
(255
)
 
132

Total Restructuring and Contract Termination
$
27,747

 
$
33,892

 
$
(26,104
)
 
$
35,535

 
$
13,390

 
$
(25,095
)
 
$
23,830

 
$
13,590

 
$
(15,223
)
 
$
22,197

____________________________
(1) 
During fiscal year 2015, the Company recognized pre-tax restructuring reversals of $0.2 million in the Human Health segment and $0.3 million in the Environmental Health segment related to lower than expected costs associated with workforce reductions for the Q2 2015 Plan.
(2) 
During fiscal year 2015, the Company recognized pre-tax restructuring reversals of $1.2 million in the Human Health segment and $1.9 million in the Environmental Health segment related to lower than expected costs associated with workforce reductions for the Q3 2014 Plan.
(3) 
During fiscal year 2015, the Company recognized pre-tax restructuring reversals of $0.1 million in each of the Human Health and Environmental Health segments related to lower than expected costs associated with workforce reductions for the Q2 2014 Plan.
(4) 
During fiscal year 2015, the Company recognized a pre-tax restructuring reversal of $0.1 million in the Human Health segment related to lower than expected costs associated with workforce reductions for the Q1 2014 Plan.
(5) 
During fiscal year 2015, the Company recognized a pre-tax restructuring charge of $1.4 million in the Human Health segment primarily related to higher than expected costs associated with the closure of the excess facility space, which was offset by a pre-tax restructuring reversal of $1.6 million in the Environmental Health segment primarily related to lower than expected costs associated with workforce reductions for the previous restructuring plans. During fiscal year 2014, the Company recognized pre-tax restructuring reversals of $0.8 million in the Human Health segment and $1.7 million in the Environmental Health segment primarily related to lower than expected costs associated with workforce reductions, which was partially offset by higher than expected costs associated with the closure of the excess facility space for the previous restructuring plans.