Restructuring Costs

12 Months Ended

Jan. 02, 2022

Restructuring And Related Activities [Abstract]

Restructuring Costs

(12) Restructuring costs

As of January 2, 2022, the Company had substantially completed several initiatives intended to strengthen operational performance and to support building capabilities to enable it to win in the marketplace. Restructuring costs for the fiscal years ended January 2, 2022 and January 3, 2021 were immaterial. Total restructuring costs for the fiscal year ended December 29, 2019 were $11.9 million, of which $11.7 million were included in Cost of revenue.

During the fiscal year ended January 3, 2016, the Company announced that it will outsource its equipment manufacturing operations in Rochester, New York and refurbishment operations in Neckargemund, Germany to a third-party contract manufacturing company. These initiatives were substantially completed during the fiscal year ended December 29, 2019, with total cumulative charges incurred of $75.4 million. The Company made cash payments of $6.5 million during the fiscal year ended January 3, 2021, and made cumulative cash payments of $71.1 million as of January 2, 2022.

During the fiscal year ended December 30, 2018, the Company announced that it will transfer certain production lines among facilities in order to achieve operational and cost efficiencies. These initiatives were substantially completed during fiscal 2021. The Company incurred net charges of $19.5 million cumulative to date comprised of $13.3 million in accelerated depreciation and $6.2 million in severance and other facility related costs. The Company has made cumulative cash payments of $15.4 million related to these initiatives, including $9.4 million cumulative to date for capital expenditures through January 2, 2022.