13. Restructuring Costs (Notes)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING COSTS

In December 2018, we announced the closure of a small manufacturing facility in France. Restructuring charges for the facility closure are included in our Clinical Diagnostics segment's results of operations. The liability of $1.9 million as of September 30, 2020 was recorded in Accrued payroll and employee benefits in the condensed consolidated balance sheets. From December 2018 to September 30, 2020, total expenses were $4.0 million

The following table summarizes the activity for the facility closure restructuring reserves for severance and exit costs (in millions):


Balances as of December 31, 2019:	$	3.2


Cash payments	(1.4)
Foreign currency translation losses	0.1
Balances as of September 30, 2020:	$	1.9

In November 2019, we announced our strategy-driven restructuring plan. We expect that a significant portion of the net savings resulting from this restructuring plan will be repurposed in alignment with our portfolio strategy.

The restructuring plan includes a workforce reduction in Europe, the United States and Canada, and is expected to be incurred through 2020. The liability of $6.8 million as of September 30, 2020 was recorded in Accrued payroll and employee benefits in the condensed consolidated balance sheets. The amounts reflected in Cost of goods sold, Selling, general and administrative expense and Research and development expense were $(1.0) million and $(4.5) million in the condensed consolidated statements of income for the three and nine months ended September 30, 2020, respectively. From November 2019 to September 30, 2020, total expenses were $20.8 million.

The following table summarizes the activity of our European and North American reorganization restructuring reserves for severance (in millions):


	Life Science		Clinical Diagnostics		Total
Balances as of December 31, 2019:	$	6.2	$	19.1	$	25.3

Adjustment to expense	(0.6)		(3.9)		(4.5)
Cash payments	(3.8)		(10.5)		(14.3)
Foreign currency translation losses	—		0.3		0.3
Balances as of September 30, 2020:	$	1.8	$	5.0	$	6.8

In June 2020, we announced a restructuring plan to consolidate certain finance and administrative activities in Europe and the United States. The restructuring plan is expected to be completed by March 2021. The liability of $3.1 million as of September 30, 2020 was recorded in Accrued payroll and employee benefits in the condensed consolidated balance sheets. The amounts reflected in Selling, general and administrative expense were $(0.2) million and $3.6 million for the three and nine months ended September 30, 2020, respectively.

The following table summarizes the restructuring activities related to the finance and administrative reorganization (in millions):


	Life Science		Clinical Diagnostics		Total
Balances as of December 31, 2019:	$	—	$	—	$	—
Charged to expense	1.5		2.3		3.8
Adjustment to expense	(0.1)		(0.1)		(0.2)
Cash payments	(0.2)		(0.3)		(0.5)

Balances as of September 30, 2020:	$	1.2	$	1.9	$	3.1