RESTRUCTURING

On an ongoing basis, we review the global economy, the healthcare industry and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business.

On May 1, 2013, we committed to a plan to pursue identified Value Creation and Capture initiatives ("VCC"). These opportunities include investment in product line extensions and next generation products, enhancement of commercial capabilities and a transformation of our manufacturing network. The transformation of our manufacturing network will take place over three years and includes changes to the current manufacturing footprint and supply chain structure (the "Network Plan"). To implement the Network Plan, we are (i) discontinuing manufacturing activities at our Braintree, Massachusetts, Ascoli-Piceno, Italy and Bothwell, Scotland facilities, (ii) creating a technology center of excellence for product development in Braintree, Massachusetts, (iii) expanding our current facility in Tijuana, Mexico, (iv) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (v) building a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. See the Liquidity and Capital Resources discussion of the MD&A for further discussion of the costs of these activities.

We estimate we will incur approximately $45.0 million in restructuring and restructuring related expense in 2016.

The following summarizes the restructuring costs for the three months ended June 27, 2015 and June 28, 2014:



	Three Months Ended June 27, 2015
(In thousands)	Restructuring Accrual Balance at March 28, 2015		Restructuring Costs Incurred		Less Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at June 27, 2015
Severance and other employee costs	$	16,393	$	6,859	$	(8,155	)	$	—		$	15,097
Other costs	219		2,175		(2,266		)	—			128
Accelerated depreciation	—		421		—			(421		)	—
Asset write-down	—		4		—			(4		)	—
Total	$	16,612	$	9,459	$	(10,421	)	$	(425	)	$	15,225



	Three Months Ended June 28, 2014
(in thousands)	Restructuring Accrual Balance at March 29, 2014		Restructuring Costs Incurred		Less Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at June 28, 2014
Severance and other employee costs	$	22,908	$	9,542	$	(7,133	)	$	—		$	25,317
Other costs	728		5,167		(5,493		)	—			402
Accelerated depreciation	—		260		—			(260		)	—
Asset write-down	—		96		—			(96		)	—
	$	23,636	$	15,065	$	(12,626	)	$	(356	)	$	25,719

We deployed significant financial resources for these activities. Many of the costs necessary to complete the VCC initiatives, such as severance and other plant closing costs, qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We incurred $9.5 million in severance, asset write-downs and other restructuring charges during the three months ended June 27, 2015. In addition, we also incurred $5.4 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, product line transfer teams and related costs, 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 Consolidated Statements of Income and Comprehensive Income for the periods presented.



Transformation costs	Three Months Ended
(in thousands)	June 27, 2015		June 28, 2014
Transformation and other costs	$	5,326	$	7,678
Accelerated depreciation	31		250
Total	$	5,357	$	7,928



Restructuring costs	Three Months Ended
(in thousands)	June 27, 2015		June 28, 2014
Severance and other employee costs	$	6,859	$	9,542
Other costs	2,175		5,167
Accelerated depreciation	421		260
Asset disposal	4		96
Total	$	9,459	$	15,065

Total restructuring and transformation	$	14,816	$	22,993