Restructuring and Related Charges

12 Months Ended

Dec. 30, 2022

Restructuring and Related Activities [Abstract]


7.			Restructuring and Related Charges

During fiscal 2021 (Predecessor), fiscal 2018 (Predecessor) and fiscal 2016 (Predecessor), the Company launched restructuring programs designed to improve its cost structure, neither of which has a specified time period. 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 and 2016 programs. The 2021 program will commence upon substantial completion of the 2018 program, and has not commenced as of December 30, 2022 (Successor). 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:


	Successor		Predecessor
	Period from June 17, 2022 through December 30, 2022		Period from January 1, 2022 through June 16, 2022		Year Ended December 31, 2021		Year Ended December 25, 2020
Specialty Brands	$	—	$	—	$	0.1	$	0.1
Specialty Generics	0.8		3.5		4.9		0.1
Corporate	11.3		6.1		24.0		49.6
Restructuring and related charges, net	12.1		9.6		29.0		49.8
Less: accelerated depreciation	(1.0)		—		(2.1)		(12.3)
Restructuring charges, net	$	11.1	$	9.6	$	26.9	$	37.5

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


	Successor		Predecessor
	Period from June 17, 2022 through December 30, 2022		Period from January 1, 2022 through June 16, 2022		Year Ended December 31, 2021		Year Ended December 25, 2020
2018 Program	$	12.1	$	9.6	$	29.0	$	52.0
2016 Program	—		—		—		(0.3)
Acquisition programs	—		—		—		(1.9)
Total programs	12.1		9.6		29.0		49.8
Less: non-cash charges, including accelerated depreciation	(2.2)		(3.6)		(6.3)		(23.8)
Total charges expected to be settled in cash	$	9.9	$	6.0	$	22.7	$	26.0

The following table summarizes cash activity for restructuring reserves, substantially all of which related to contract termination costs, employee severance and benefits and exiting of certain facilities:


	2018 Program		2016 Program		Acquisition Programs		Total
Balance as of December 27, 2019 (Predecessor)	$	2.7	$	31.3	$	0.2	$	34.2
Charges from continuing operations	28.6		0.1		—		28.7
Changes in estimate from continuing operations	(0.4)		(0.4)		(1.9)		(2.7)
Cash payments	(20.1)		(30.7)		(0.2)		(51.0)
Reclassifications (1)	(10.0)		—		—		(10.0)
Currency translation and other	0.2		(0.3)		1.9		1.8
Balance as of December 25, 2020 (Predecessor)	1.0		—		—		1.0
Charges from continuing operations	23.7		—		—		23.7
Changes in estimate from continuing operations	(1.0)		—		—		(1.0)
Cash payments	(12.8)		—		—		(12.8)


Balance as of December 31, 2021 (Predecessor)	10.9		—		—		10.9
Charges from continuing operations	7.1		—		—		7.1
Changes in estimate from continuing operations	(1.1)		—		—		(1.1)
Cash payments	(15.9)		—		—		(15.9)


Balance as of June 16, 2022 (Predecessor)	$	1.0	$	—	$	—	$	1.0


Balance as of June 17, 2022 (Successor)	$	1.0	$	—	$	—	$	1.0
Charges from continuing operations	12.7		—		—		12.7
Changes in estimate from continuing operations	(2.8)		—		—		(2.8)
Cash payments	(6.3)		—		—		(6.3)


Balance as of December 30, 2022 (Successor)	$	4.6	$	—	$	—	$	4.6

(1)Represents the reclassification of certain restructuring reserve balances to LSTC as a result of the Company rejecting certain of its executory contracts.

As of December 30, 2022 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows:


	Successor		Predecessor

Specialty Brands	$	—	$	3.1
Specialty Generics	0.8		18.5
Corporate	11.3		84.0
	$	12.1	$	105.6

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