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Restructuring and Lease Charges, Net
9 Months Ended
Oct. 04, 2015
Restructuring and Related Activities [Abstract]  
Restructuring and Lease Charges, Net
Restructuring and Contract Termination Charges, Net

The Company's management has approved a series of restructuring actions related to the impact of acquisitions and divestitures, the alignment of the Company's operations with its growth strategy, the integration of its business units and productivity initiatives. The current portion of restructuring and contract termination charges is recorded in accrued restructuring and contract termination charges and the long-term portion of restructuring and contract termination charges is recorded in long-term liabilities. The activities associated with these plans have been reported as restructuring and contract termination charges, net, and are included as a component of operating expenses from continuing operations.

The Company implemented restructuring plans in the second quarter of fiscal year 2015 and the third quarter of fiscal year 2014 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q2 2015 Plan" and the "Q3 2014 Plan", respectively). The Company implemented restructuring plans in the second and first quarters of fiscal year 2014 consisting of workforce reductions principally intended to focus resources on higher growth end markets (the "Q2 2014 Plan" and the "Q1 2014 Plan", respectively). Details of the plans initiated in previous years (“Previous Plans”) are discussed more fully in Note 4 to the audited consolidated financial statements in the 2014 Form 10-K. The Company also has terminated various contractual commitments in connection with certain disposal activities and has recorded charges, to the extent applicable, for the costs of terminating these contracts before the end of their terms and the costs that will continue to be incurred for the remaining terms without economic benefit to the Company.

The following table summarizes the number of employees reduced, the initial restructuring or contract termination charges by operating segment, and the dates by which payments were substantially completed, or the expected dates by which payments will be substantially completed, for restructuring actions implemented during the nine months ended October 4, 2015 and fiscal year 2014:
 
 
 
Initial Restructuring or Contract Termination Charges
 
Total
 
Date or Expected Date Payments Substantially Completed by
 
Headcount Reduction
 
Human Health
 
Environmental Health
 
 
 
(In thousands, except headcount data)
 
 
Q2 2015 Plan
97

 
$
1,850

 
$
4,160

 
$
6,010

 
Q2 FY2016
2015 Contract Termination Charges

 

 
25

 
25

 
Q4 FY2015
 
 
 
 
 
 
 
 
 
 
Q3 2014 Plan
152

 
7,126

 
5,925

 
13,051

 
Q4 FY2015
Q2 2014 Plan
22

 
545

 
190

 
735

 
Q2 FY2015
Q1 2014 Plan
17

 
370

 
197

 
567

 
Q4 FY2014
2014 Contract Termination Charges

 

 
1,545

 
1,545

 
Q4 FY2015

The Company expects to make payments under the Previous Plans for remaining residual lease obligations, with terms varying in length, through fiscal year 2022.

At October 4, 2015, the Company had $17.1 million recorded for accrued restructuring and contract termination charges, of which $12.1 million was recorded in short-term accrued restructuring and contract termination charges and $5.0 million was recorded in long-term liabilities. At December 28, 2014, the Company had $23.8 million recorded for accrued restructuring and contract termination charges, of which $17.1 million was recorded in short-accrued restructuring and $6.7 million was recorded in long-term liabilities. The following table summarizes the Company's restructuring and contract termination accrual balances and related activity by restructuring plan, as well as contract termination, during the nine months ended October 4, 2015:
 
Balance at December 28, 2014
 
2015 Charges
 
2015 Changes in Estimates, Net
 
2015 Amounts Paid
 
Balance at October 4, 2015
 
(In thousands)
Severance:
Q2 2015 Plan(1)
$

 
$
6,010

 
$
(540
)
 
$
(3,166
)
 
$
2,304

Q3 2014 Plan
10,059

 

 

 
(5,257
)
 
4,802

Q2 2014 Plan(2)
251

 

 
(179
)
 
(8
)
 
64

Q1 2014 Plan(3)
92

 

 
(92
)
 

 

Previous Plans(4)
13,124

 

 
(386
)
 
(2,961
)
 
9,777

Restructuring
23,526

 
6,010

 
(1,197
)
 
(11,392
)
 
16,947

Contract Termination
304

 
25

 

 
(200
)
 
129

Total Restructuring and Contract Termination
$
23,830

 
$
6,035

 
$
(1,197
)
 
$
(11,592
)
 
$
17,076



(1) 
During the nine months ended October 4, 2015, the Company recognized pre-tax restructuring reversals of $0.2 million in the Human Health segment and $0.3 million in the Environmental Health segment related to lower than expected costs associated with workforce reductions for the Q2 2015 Plan.
(2) 
During the nine months ended October 4, 2015, the Company recognized pre-tax restructuring reversals of $0.1 million in each of the Human Health and Environmental Health segments related to lower than expected costs associated with workforce reductions for the Q2 2014 Plan.
(3) 
During the nine months ended October 4, 2015, the Company recognized a pre-tax restructuring reversal of $0.1 million in the Human Health segment related to lower than expected costs associated with workforce reductions for the Q1 2014 Plan.
(4) 
During the nine months ended October 4, 2015, the Company recognized a net additional pre-tax restructuring charge of $0.6 million in the Human Health segment primarily related to higher than expected costs associated with the closure of the excess facility space and a pre-tax restructuring reversal of $1.0 million in the Environmental Health segment related to lower than expected costs associated with workforce reductions for the Previous Plans.