Restructuring and Related Charges

3 Months Ended

Apr. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Charges

4. Restructuring and Related Charges

During fiscal 2021 and 2018, the Company launched restructuring programs designed to improve its cost structure. Charges of $50.0 million to $100.0 million were provided for under the 2021 program and $100.0 million to $125.0 million were provided for under the 2018 program. The 2021 program will commence upon substantial completion of the 2018 program. The 2021 program has not commenced as of April 1, 2022 and there is no specified time period associated with this program. In addition to the aforementioned restructuring programs, the Company has taken restructuring actions to generate synergies from its acquisitions.

Net restructuring and related charges by segment were as follows:

	Three Months Ended
	April 1, 2022		March 26, 2021
Specialty Generics	$	3.5	$	—
Corporate	3.3		1.1
Restructuring and related charges, net	6.8		1.1
Less: accelerated deprecation	—		(0.7)
Restructuring charges, net	$	6.8	$	0.4

Net restructuring and related charges by program were comprised of the following:

	Three Months Ended
	April 1, 2022		March 26, 2021
2018 Program	$	6.8	$	1.1
Less: non-cash charges, including accelerated depreciation	(2.1)		(1.1)
Total charges expected to be settled in cash	$	4.7	$	—

The following table summarizes cash activity for restructuring reserves, which primarily related to employee severance and benefits:

	2018 Program
Balance as of December 31, 2021	$	10.9
Charges	5.7
Changes in estimate	(1.0)
Cash payments	(12.6)
Balance as of April 1, 2022	$	3.0

As of April 1, 2022, net restructuring and related charges incurred cumulative to date were as follows:

	2018 Program
Specialty Brands	$	3.1
Specialty Generics	18.5
Corporate	81.2
	$	102.8

All of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets. Amounts paid in the future may differ from the amount currently recorded.