RESTRUCTURING

3 Months Ended

Jul. 02, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING

3. RESTRUCTURING

On an ongoing basis, the Company reviews the global economy, the healthcare industry, and the markets in which it competes to identify opportunities for efficiencies, enhance commercial capabilities, align its resources and offer its customers better solutions. In order to realize these opportunities, the Company undertakes restructuring-type activities to transform its business.

In July 2019, the Board of Directors of the Company approved the Operational Excellence Program (the “2020 Program”) and delegated authority to the Company’s management to determine the detail of the initiatives that will comprise the program. During fiscal 2022, the Company revised the program to improve product and service quality, reduce cost principally in its manufacturing and supply chain operations and ensure sustainability while helping to offset impacts from a previously announced customer loss, rising inflationary pressures and effects of the COVID-19 pandemic. The Company now expects to incur aggregate charges between $95 million and $105 million by the end of fiscal 2025. The majority of charges will result in cash outlays, including severance and other employee costs, and will be incurred as the specific actions required to execute these initiatives are identified and approved. During the three months ended July 2, 2022 and July 3, 2021, the Company incurred $3.5 million and $9.9 million, respectively, of restructuring and restructuring related costs under this program. Total cumulative charges under this program are $59.2 million.

The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the three months ended July 2, 2022, substantially all of which relates to employee severance and other employee costs:

(In thousands)	2020 Program		Prior Programs		Total
Balance at April 2, 2022	$	2,460	$	345	$	2,805
Costs incurred, net of reversals	(44)		—		(44)
Payments	(703)		(20)		(723)
Balance at July 2, 2022	$	1,713	$	325	$	2,038

The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Cost of goods sold	$	(206)	$	2,253
Research and development	—		105
Selling, general and administrative expenses	162		1,062
	$	(44)	$	3,420

As of July 2, 2022, the Company had a restructuring liability of $2.0 million, of which $1.7 million is payable within the next twelve months.

In addition to the restructuring costs included in the table above, the Company also incurred costs that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as restructuring related costs. These costs consist primarily of expenditures directly related to the restructuring actions and include program management costs associated with the implementation of outsourcing initiatives and recent accounting standards.

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

Restructuring costs	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Plasma	$	(211)	$	2,288
Blood Center	—		3
Hospital	—		(38)
Corporate	167		1,167
Total	$	(44)	$	3,420
Restructuring related costs	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Plasma	$	640	$	1,738
Blood Center	2		490
Hospital	89		133
Corporate	2,791		4,274
Total	$	3,522	$	6,635
Total restructuring and restructuring related costs	$	3,478	$	10,055