XML 20 R9.htm IDEA: XBRL DOCUMENT v3.22.2.2
RESTRUCTURING
 6 Months Ended
Oct. 01, 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 under the program. 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 and six months ended October 1, 2022, the Company incurred $3.1 million and $6.6 million, respectively, of restructuring and restructuring related costs under this program. During the three and six months ended October 2, 2021, the Company incurred $4.6 million and $14.5 million, respectively, of restructuring and restructuring related costs under this program. Total cumulative charges under this program are $62.3 million.

The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the six months ended October 1, 2022, substantially all of which relates to employee severance and other employee costs:
(In thousands)2020 ProgramPrior ProgramsTotal
Balance at April 2, 2022$2,460 $345 $2,805 
Costs incurred, net of reversals59 62 121 
Payments(1,038)(101)(1,139)
Balance at October 1, 2022$1,481 $306 $1,787 

The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of Income and Comprehensive Income:
 Three Months EndedSix Months Ended
(In thousands) October 1,
2022		October 2,
2021		October 1,
2022		October 2,
2021
Cost of goods sold$29 $210 $(177)$2,463 
Research and development— 3 — 108 
Selling, general and administrative expenses136 482 298 1,544 
$165 $695 $121 $4,115 

As of October 1, 2022, the Company had a restructuring liability of $1.8 million, of which $1.5 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 costsThree Months EndedSix Months Ended
(In thousands) October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Plasma$— $411 $(211)$2,699 
Blood Center— — — 3 
Hospital— (53)— (91)
Corporate165 337 332 1,504 
Total$165 $695 $121 $4,115 
Restructuring related costsThree Months EndedSix Months Ended
(In thousands) October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Plasma$108 $1,403 $748 $3,141 
Blood Center16 40 18 530 
Hospital111 32 200 165 
Corporate2,794 2,343 5,585 6,617 
Total$3,029 $3,818 $6,551 $10,453 
Total restructuring and restructuring related costs$3,194 $4,513 $6,672 $14,568