Restructuring and Lease Charges, Net

6 Months Ended

Jul. 05, 2020

Restructuring and Related Activities [Abstract]

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, accrued expense and other current liabilities, and operating lease right-of-use-assets. 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 $0.2 million and $0.1 million during the six months ended July 5, 2020 in the Discovery & Analytical Solutions segment and Diagnostics segment, respectively.

The Company recorded pre-tax charges of $0.8 million and $2.2 million associated with relocating facilities during the three and six months ended July 5, 2020, respectively, in the Discovery & Analytical Solutions segment. The Company recorded pre-tax charges of $0.3 million and $0.4 million associated with relocating facilities during the three and six months ended July 5, 2020, respectively, in the Diagnostics segment. The Company expects to make payments on these relocation activities through fiscal year 2021.

At July 5, 2020, the Company had $13.9 million recorded for accrued restructuring and other costs, of which $9.6 million was recorded in short-term accrued restructuring and other costs, $0.5 million was recorded in operating lease right-of-use assets, $1.3 million was recorded in operating lease liabilities and $2.5 million was recorded in long-term 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 six months ended July 5, 2020:


	Balance at December 29, 2019		2020 Charges		2020 Changes in Estimates, Net		2020 Amounts Paid		Balance at July 5, 2020
	(In thousands)
Severance:

Q1 2020 Plan	$	—	$	3,446	$	—	$	(1,791)	$	1,655
Q4 2019 Plan	889		—		(69)		(454)		366
Q3 2019 Plan	6,311		—		—		(1,798)		4,513
Q2 2019 Plan	1,889		—		—		(1,152)		737
Q1 2019 Plan	2,129		—		—		(669)		1,460

Facility:

Q1 2020 Plan	—		774		—		(120)		654

Previous Plans	1,647		—		69		(52)		1,664
Restructuring	12,865		4,220		—		(6,036)		11,049
Contract Termination	188		—		212		(26)		374
Other Costs	827		2,584		—		(930)		2,481
Total Restructuring and Other Liabilities	$	13,880	$	6,804	$	212	$	(6,992)	$	13,904