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Restructuring and Contract Termination Charges, Net
12 Months Ended
Dec. 29, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Contract Termination Charges, Net Restructuring and Other Costs, Net

The Company has undertaken 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 its productivity initiatives. The activities associated with these plans have been reported as restructuring and other costs, net, as applicable, and are included as a component of income from continuing operations. The current portion of restructuring and other costs is recorded in short-term accrued restructuring and other costs and accrued expense and other current liabilities. The long-term portion of restructuring and other costs is recorded in long-term liabilities and operating lease liabilities.

The Company implemented a restructuring plan in each quarter of fiscal year 2019 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q1 2019 Plan", "Q2 2019 Plan", "Q3 2019 Plan" and "Q4 2019 Plan", respectively). The Company implemented a restructuring plan in each of the first, third and fourth quarters of fiscal year 2018 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q1 2018 Plan", "Q3 2018 Plan" and "Q4 2018 Plan", respectively). The Company implemented a restructuring plan in each of the fourth and third quarters of fiscal year 2017 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q4 2017 Plan and "Q3 2017 Plan", respectively). The Company implemented a restructuring plan in the first quarter of fiscal year 2017 consisting of workforce reductions and the closure of excess facility space principally intended to focus resources on higher growth end markets (the "Q1 2017 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 2019, 2018 and 2017 in continuing operations:
 
Workforce Reductions
 
Closure of Excess Facility
 
Total
 
(Expected) Date Payments Substantially Completed by
 
Headcount Reduction
 
Diagnostics
 
Discovery & Analytical Solutions
 
Diagnostics
 
Discovery & Analytical Solutions
 
 
Severance
 
Excess Facility
 
(In thousands, except headcount data)
 
 
 
 
Q4 2019 Plan

22
 
$
2,404

 
$
177

 
$

 
$

 
$
2,581

 
Q3 FY2020
 
Q3 2019 Plan

259
 
2,641

 
11,156

 

 

 
13,797

 
Q2 FY2020
 
Q2 2019 Plan

44
 
1,129

 
4,461

 

 

 
5,590

 
Q1 FY2020
 
Q1 2019 Plan

105
 
1,459

 
6,001

 

 

 
7,460

 
Q4 FY2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2018 Plan

1
 

 
348

 

 

 
348

 
Q1 FY2019
 
Q3 2018 Plan

61
 
618

 
1,146

 

 

 
1,764

 
Q4 FY2019
 
Q1 2018 Plan

47
 
902

 
5,096

 

 

 
5,998

 
Q4 FY2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2017 Plan

29
 
255

 
1,680

 

 

 
1,935

 
Q1 FY2019
 
Q3 2017 Plan

27
 
1,021

 
1,321

 

 

 
2,342

 
Q4 FY2018
 
Q1 2017 Plan

90
 
1,631

 
5,000

 
33

 
33

 
6,697

 
Q2 FY2018
 
Q2 FY2018


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 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 $0.2 million, $5.0 million and $3.6 million in the Discovery & Analytical Solutions segment during fiscal years 2019, 2018 and 2017, respectively, and $0.2 million and $0.5 million during fiscal year 2019 and 2017, respectively, in the Diagnostics segment as a result of these contract terminations.

The Company recorded pre-tax charges of $0.8 million associated with relocating facilities during fiscal year 2019. The Company expects to make payments on these relocation activities through fiscal year 2021.

At December 29, 2019, the Company had $13.9 million recorded for accrued restructuring and other costs, of which $11.6 million was recorded in short-term accrued restructuring and other costs, $0.4 million was recorded in accrued expenses and other current liabilities, $0.8 million was recorded in long-term liabilities, and $1.1 million was recorded in operating lease liabilities. At December 30, 2018, the Company had $6.2 million recorded for accrued restructuring and other costs, of which $4.8 million was recorded in short-term accrued restructuring and other costs and $1.4 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 other accrual balances and related activity, during fiscal years 2019, 2018 and 2017 in continuing operations:

 
 
Balance at January 1, 2017
 
2017 Charges and Changes in Estimates, Net
 
2017 Amounts Paid
 
Balance at December 31, 2017
 
2018 Charges and Changes in Estimates, Net
 
2018 Amounts Paid
 
Balance at December 30, 2018
 
2019 Charges and Changes in Estimates, Net
 
2019 Amounts Paid
 
Balance at December 29, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2019 Plan
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
2,581

 
$
(1,692
)
 
$
889

Q3 2019 Plan
 

 

 

 

 

 

 

 
13,797

 
(7,486
)
 
6,311

Q2 2019 Plan
 

 

 

 

 

 

 

 
5,590

 
(3,701
)
 
1,889

Q1 2019 Plan
 

 

 

 

 

 

 

 
7,483

 
(5,354
)
 
2,129

Q4 2018 Plan

 

 

 

 

 
348

 

 
348

 
3

 
(351
)
 

Q3 2018 Plan(1)

 

 

 

 

 
2,054

 
(639
)
 
1,415

 
(77
)
 
(1,314
)
 
24

Q1 2018 Plan(2)

 

 

 

 

 
5,998

 
(4,389
)
 
1,609

 
(1,069
)
 
(282
)
 
258

Q4 2017 Plan

 

 
1,935

 
(16
)
 
1,919

 
(381
)
 
(1,538
)
 

 

 

 

Q3 2017 Plan

 

 
2,342

 
(270
)
 
2,072

 
(1,204
)
 
(868
)
 

 

 

 

Q1 2017 Plan(3)

 

 
6,631

 
(4,133
)
 
2,498

 
(983
)
 
(1,232
)
 
283

 
(276
)
 
(7
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facility:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2017 Plan

 

 
66

 
(33
)
 
33

 

 
(33
)
 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previous Plans(4)
 
10,424

 
(1,568
)
 
(4,457
)
 
4,399

 
570

 
(2,581
)
 
2,388

 
117

 
(1,140
)
 
1,365

Restructuring
 
10,424

 
9,406

 
(8,909
)
 
10,921

 
6,402

 
(11,280
)
 
6,043

 
28,149

 
(21,327
)
 
12,865

Contract Termination
 
117

 
3,251

 
(320
)
 
3,048

 
4,742

 
(7,653
)
 
137

 
452

 
(401
)
 
188

Other Costs
 

 

 

 

 

 

 

 
827

 

 
827

Total Restructuring and Other Liabilities
 
$
10,541

 
$
12,657

 
$
(9,229
)
 
$
13,969

 
$
11,144

 
$
(18,933
)
 
$
6,180

 
$
29,428

 
$
(21,728
)
 
$
13,880

____________________________
(1) 
During fiscal year 2019, the Company recognized pre-tax restructuring reversals of $0.4 million in the Diagnostics segment related to lower than expected costs associated with workforce reductions and an additional expense of $0.3 million in the Discovery & Analytical Solutions segment for the Q3 2018 Plan.
(2) 
During fiscal year 2019, the Company recognized pre-tax restructuring reversals of $1.1 million in the Discovery & Analytical Solutions segment related to lower than expected costs associated with workforce reductions for the Q1 2018 Plan.
(3) 
During fiscal year 2019, the Company recognized pre-tax restructuring reversals of $0.3 million in the Discovery & Analytical Solutions segment related to lower than expected costs associated with workforce reductions for the Q1 2017 Plan.
(4) 
During fiscal year 2019, the Company recognized pre-tax restructuring expense of $0.1 million in the Discovery & Analytical Solutions segment related to higher than expected costs associated with workforce reductions for the Previous Plans.