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.

During the first quarter of fiscal 2017, in connection with our global strategic review, we launched the first phase of a restructuring program designed to reposition our organization and improve our cost structure. The first phase includes both a reduction of headcount and operating costs as well as projects to simplify product lines. We may also take additional steps to modify our manufacturing operations to reflect our strategic direction.

We expect to incur approximately $26 million of restructuring and transformation charges, comprised of $17 million in termination benefits and $9 million in other related exit costs. Substantially all of these charges will result in future cash outlays and are expected to be incurred during fiscal 2017. Savings from this program are estimated to be approximately $40 million in fiscal 2017. Subsequent phases of the program may require restructuring charges in future fiscal years.

In fiscal 2016, we completed our Value Creation and Capture (“VCC”) opportunities initiative. This initiative included (i) discontinuation of manufacturing activities at our Ascoli-Piceno, Italy and Braintree, Massachusetts facilities, (ii) expansion of our current facility in Tijuana, Mexico, (iii) transfer of all equipment production to our contract manufacturer, Sanmina Corporation, and (iv) consolidation of the manufacturing of product formerly produced in the U.S. and Italy to our new manufacturing facility in Penang, Malaysia. We continue to manufacture in Bothwell, Scotland. The cumulative restructuring charges incurred as a result of the VCC initiative were $100.1 million.

The following summarizes the restructuring activity for the fiscal year ended April 2, 2016, March 28, 2015, and March 29, 2014, respectively:



(In thousands)	Severance and Other Employee Costs			Other Costs			Accelerated Depreciation			Asset Write Down			Total Restructuring
Balance at March 30, 2013	$	3,089		$	173		$	—		$	—		$	3,262
Costs incurred	31,492			14,254			2,390			915			49,051
Payments	(11,673		)	(13,699		)	—			—			(25,372		)
Non-cash adjustments	—			—			(2,390		)	(915		)	(3,305		)
Balance at March 29, 2014	$	22,908		$	728		$	—		$	—		$	23,636
Costs incurred	19,879			15,362			1,326			296			36,863
Payments	(26,394		)	(15,871		)	—			—			(42,265		)
Non-cash adjustments	—			—			(1,326		)	(296		)	(1,622		)
Balance at March 28, 2015	$	16,393		$	219		$	—		$	—		$	16,612
Costs incurred	10,707			7,846			1,469			3,033			23,055
Payments	(18,348		)	(8,065		)	—			—			(26,413		)
Non-cash adjustments	—			—			(1,469		)	(3,033		)	(4,502		)
Balance at April 2, 2016	$	8,752		$	—		$	—		$	—		$	8,752

The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of (loss) income. Total restructuring charges for fiscal 2016 include a $3.0 million asset write down to fair value related to land, buildings and related equipment for a property we plan to dispose of, as discussed in Note 12, Property Plant and Equipment. As of April 2, 2016, we had a restructuring liability of $8.8 million, of which, approximately $8.1 million is payable within the next twelve months.

In addition to the restructuring expenses included in the table above, we also incurred $19.2 million of costs that do not constitute as 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. These costs exclude the impact of contingent consideration of $4.9 million which was reversed during the third quarter of fiscal 2016 and is presented within the contingent consideration (income) expense line on the consolidated statements of (loss) income. The contingent consideration reversal of $2.9 million and an insignificant amount were also excluded for fiscal 2015 and fiscal 2014, respectively.

The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and other expense, net in our consolidated statements of (loss) income for the periods presented.



Transformation costs
(in thousands)	2016		2015		2014
Transformation and other costs	$	17,377	$	26,979	$	30,656
Accelerated depreciation	155		930		4,203
Asset disposal	1,697		4,925		796
Total	$	19,229	$	32,834	$	35,655

The tables below present restructuring and transformation costs by reportable segment:



Restructuring costs
(in thousands)	2016		2015		2014
Japan	$	9	$	258	$	372
EMEA	3,210		3,310		1,444
North America Plasma	—		360		42
All Other	19,836		32,935		47,193
Total	$	23,055	$	36,863	$	49,051

Transformation costs
(in thousands)	2016		2015		2014
Japan	$	416	$	158	$	131
EMEA	961		838		1,260
North America Plasma	—		28		—
All Other	17,852		31,810		34,264
Total	$	19,229	$	32,834	$	35,655

Total restructuring and transformation	$	42,284	$	69,697	$	84,706