RESTRUCTURING

On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete. From these reviews we identify opportunities to improve efficiencies, enhance commercial capabilities, better align our resources and offer customers better comprehensive solutions. In order to realize these opportunities, from time to time, we undertake restructuring and other initiatives to transform our business.

On May 1, 2013, we announced that our Board of Directors has approved a plan to pursue identified VCC opportunities. These include: (i) investment in product line extensions, next generation products and growth platforms; (ii) enhancement of commercial execution capabilities by implementing go-to-market and other strategies to enable global profitable revenue growth; and (iii) transformation of the manufacturing network to best support these commercial strategies while optimizing expense levels. Collectively, these are opportunities to position us for optimal growth and increased competitiveness.

Our manufacturing network transformation plan, part of our larger VCC activities previously announced, now includes (i) discontinuing manufacturing activities at our Braintree, Massachusetts and Ascoli-Piceno, Italy facilities, (ii) consulting with employee representatives regarding ceasing operations and closure of our manufacturing facility in Bothwell, Scotland, (iii) creating a technology center of excellence for product development, (iv) expansion of our current facility in Tijuana, Mexico, (v) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (vi) building a new manufacturing facility in Malaysia closer to our customers in Asia.

We estimate we will incur approximately $74.0 million of restructuring and restructuring related expense and spend approximately $58.0 million on these initiatives in fiscal 2015. We estimate we will spend an additional $10 to $15 million to complete these initiatives through fiscal 2017.

For the year ended March 29, 2014, we incurred $49.1 million of restructuring and restructuring related charges of which approximately $25.4 million has been paid to date and approximately $18.2 million is payable within the next twelve months. The majority of these costs relate to the discontinuation of manufacturing activities in Braintree, Massachusetts and Ascoli-Piceno, Italy, and were incurred in fiscal 2014. The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of income and comprehensive income.

The following summarizes the restructuring activity for the fiscal year ended March 29, 2014, March 30, 2013, and March 31, 2012, respectively:



(In thousands)	Balance at March 30, 2013		Cost Incurred		Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at March 29, 2014
Severance and other employee costs	$	3,089	$	31,492	$	(11,673	)	$	—		$	22,908
Facility related costs	173		14,254		(13,699		)	—			728
Accelerated depreciation	—		2,390		—			(2,390		)	—
Asset write-down	—		915		—			(915		)	—
	$	3,262	$	49,051	$	(25,372	)	$	(3,305	)	$	23,636



(In thousands)	Balance at March 31, 2012		Cost Incurred		Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at March 30, 2013
Severance and other employee costs	$	1,461	$	6,214	$	(4,586	)	$	—		$	3,089
Facility related costs	533		431		(791		)	—			173
Asset write down	—		4,247		—			(4,247		)	—
	$	1,994	$	10,892	$	(5,377	)	$	(4,247	)	$	3,262



(In thousands)	Balance at April 2, 2011		Cost Incurred		Payments			Less Non-Cash Adjustments		Restructuring Accrual Balance at March 31, 2012
Severance and other employee costs	$	2,782	$	4,112	$	(5,433	)	$	—	$	1,461
Facility related costs	889		1,746		(2,102		)	—		533
	$	3,671	$	5,858	$	(7,535	)	$	—	$	1,994

We deployed significant financial resources for these activities. Many of the activities necessary to complete the VCC initiatives include severance and other costs which qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We incurred $49.1 million in severance, asset write-offs and other restructuring charges in fiscal 2014. In addition, we also incurred $35.7 million of costs that do not constitute restructuring under ASC 420, which we refer to as "Transformation Costs". These costs consist primarily of expenditures directly related to our transformation activities including program management, integration and product line transfer teams, infrastructure related costs, accelerated depreciation and asset disposals.

The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and interest and other expense in our statements of income and comprehensive income for the periods presented. The majority of expenses recorded as Transformation Costs in the prior year relate to the integration of the whole blood acquisition. Transformation Costs in the current year are associated with our VCC initiatives as well as completion of the integration of the whole blood acquisition.



Transformation costs
(in thousands)	March 29, 2014		March 30, 2013		March 31, 2012
Integration and other costs	$	30,701	$	60,878	$	11,206
Accelerated depreciation	4,203		687		677
Asset disposal	796		—		—
Total	$	35,700	$	61,565	$	11,883

Restructuring costs
(in thousands)	March 29, 2014		March 30, 2013		March 31, 2012
Severance and other employee costs	$	31,492	$	6,214	$	4,112
Other costs	14,254		431		1,746
Accelerated depreciation	2,390		—		—
Asset disposal	915		4,247		—
Total	$	49,051	$	10,892	$	5,858

Total restructuring and transformation	$	84,751	$	72,457	$	17,741