Restructuring and Lease Charges, Net

3 Months Ended

Apr. 05, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Lease Charges, Net

Restructuring and Other Costs, Net

The Company has undertaken 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 its productivity initiatives. The activities associated with these plans have been reported as restructuring and other costs, net, as applicable, and are included as a component of income from continuing operations. The current portion of restructuring and other costs is recorded in short-term accrued restructuring and other costs and accrued expense and other current liabilities. The long-term portion of restructuring and other costs is recorded in long-term liabilities and operating lease liabilities.

The Company implemented a restructuring plan in the first quarter of fiscal year 2020 consisting of workforce reductions and closure of excess facilities principally intended to realign resources to emphasize growth initiatives (the "Q1 2020 Plan"). The Company implemented a restructuring plan in each quarter of fiscal year 2019 consisting of workforce reductions

principally intended to realign resources to emphasize growth initiatives (the "Q1 2019 Plan", "Q2 2019 Plan", "Q3 2019 Plan" and "Q4 2019 Plan", respectively). Details of the plans initiated in previous years (the “Previous Plans”) are discussed more fully in Note 5 to the audited consolidated financial statements in the 2019 Form 10-K.

The following table summarizes the reductions in headcount, the initial restructuring or contract termination charges by reporting segment, and the dates by which payments were substantially completed, or the dates by which payments are expected to be substantially completed, for restructuring actions implemented during fiscal years 2020 and 2019 in continuing operations:

	Workforce Reductions					Closure of Excess Facility				Total		(Expected) Date Payments Substantially Completed by
	Headcount Reduction	Discovery & Analytical Solutions		Diagnostics		Discovery & Analytical Solutions		Diagnostics				Severance	Excess Facility
	(In thousands, except headcount data)
Q1 2020 Plan	32	$	2,312	$	1,134	$	92	$	682	$	4,220	Q4 FY2020	Q1 FY2022
Q4 2019 Plan	22	$	177	2,404		—		—		2,581		Q3 FY2020	—
Q3 2019 Plan	259	$	11,156	2,641		—		—		13,797		Q2 FY2020	—
Q2 2019 Plan	44	4,461		1,129		—		—		5,590		Q1 FY2020	—
Q1 2019 Plan	105	6,001		1,459		—		—		7,460		Q4 FY2019	—

The Company does not currently expect to incur any future charges for these plans. The Company expects to make payments under the Previous Plans for remaining residual lease obligations, with terms varying in length, through fiscal year 2022.

In connection with the termination of various contractual commitments, the Company recorded additional pre-tax charges of $0.1 million and $0.2 million during the three months ended April 5, 2020, in the Diagnostics and Discovery & Analytical Solutions segments, respectively.

The Company recorded pre-tax charges of $0.1 million and $1.3 million associated with relocating facilities during the three months ended April 5, 2020 in the Diagnostics and Discovery & Analytical Solutions segments, respectively. The Company expects to make payments on these relocation activities through fiscal year 2021.

At April 5, 2020, the Company had $15.1 million recorded for accrued restructuring and other costs, of which $11.3 million was recorded in short-term accrued restructuring and other costs, $1.7 million was recorded in long-term liabilities, and $2.1 million was recorded in operating lease liabilities. At December 29, 2019, the Company had $13.9 million recorded for accrued restructuring and other costs, of which $11.6 million was recorded in short-term accrued restructuring and other costs, $0.4 million was recorded in accrued expenses and other current liabilities, $0.8 million was recorded in long-term liabilities, and $1.1 million was recorded in operating lease liabilities. The following table summarizes the Company's restructuring accrual balances and related activity by restructuring plan, as well as other accrual balances and related activity, during the three months ended April 5, 2020:

	Balance at December 29, 2019		2020 Charges		2020 Changes in Estimates, Net		2020 Amounts Paid			Balance at April 5, 2020
	(In thousands)
Severance:
Q1 2020 Plan	$	—	$	3,446	$	—	$	(791	)	$	2,655
Q4 2019 Plan	889		—		—		(40		)	849
Q3 2019 Plan	6,311		—		—		(1,456		)	4,855
Q2 2019 Plan	1,889		—		—		(857		)	1,032
Q1 2019 Plan	2,129		—		—		(669		)	1,460
Facility:
Q1 2020 Plan	—		774		—		(92		)	682
Previous Plans	1,647		—		—		(112		)	1,535
Restructuring	12,865		4,220		—		(4,017		)	13,068
Contract Termination	188		—		212		—			400
Other Costs	827		1,426		—		(598		)	1,655
Total Restructuring and Other Liabilities	$	13,880	$	5,646	$	212	$	(4,615	)	$	15,123