Restructuring and Other Costs

6 Months Ended

Jul. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Other Costs

Restructuring and Other Costs

In the first six months of 2023, restructuring and other costs primarily included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, impairment of long-lived assets, and, to a lesser extent, net charges for pre-acquisition litigation and other matters. In 2023, severance actions associated with facility consolidations and cost reduction measures affected approximately 3% of the company’s workforce.

As of August 4, 2023, the company has identified restructuring actions that will result in additional charges of approximately $85 million, primarily in 2023, and expects to identify additional actions in future periods which will be recorded when specified criteria are met, such as communication of benefit arrangements or when the costs have been incurred.

Restructuring and other costs by segment are as follows:

	Three months ended		Six months ended
(In millions)	July 1, 2023		July 1, 2023
Life Sciences Solutions	$	20	$	80
Analytical Instruments	23		23
Specialty Diagnostics	2		10
Laboratory Products and Biopharma Services	133		176
Corporate	5		6
	$	183	$	295

The following table summarizes the changes in the company’s accrued restructuring balance, which is included in other accrued expenses in the accompanying balance sheet. Other amounts reported as restructuring and other costs in the accompanying statements of income have been summarized in the notes to the table.

(In millions)	Total (a)
Balance at December 31, 2022	$	41
Net restructuring charges incurred in 2023 (b)	137
Payments	(80)
Balance at July 1, 2023	$	98

(a)The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations.

(b)Excludes $158 million of net charges, principally $99 million of charges for impairment of long-lived assets in the Laboratory Products and Biopharma Services and Life Sciences Solutions segments, $26 million of contract termination costs associated with facility closures in the Laboratory Products and Biopharma Services segment, and, to a lesser extent, $18 million of net charges for pre-acquisition litigation and other matters.

The company expects to pay accrued restructuring costs primarily through 2023.