XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
RESTRUCTURING AND OTHER SPECIAL CHARGES
 6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
RESTRUCTURING AND OTHER SPECIAL CHARGES
During the six months ended June 30, 2018, the Company recorded net restructuring and other special charges of $26.5: $9.1 within LCD and $17.4 within CDD. The charges were comprised of $23.1 related to severance and other personnel costs, $2.5 in costs associated with facility closures and general integration initiatives, and $2.3 in impairment to land held for sale. The charges were offset by the reversal of previously established reserves of $0.9 and $0.5 in unused facility reserves and unused severance reserves, respectively.
The Company incurred integration and other costs of $37.6 primarily relating to the Chiltern acquisition and planned sale of the Company's Covance Food Solutions business. The Company also recorded $4.5 in consulting expenses relating to the Chiltern integration and management integration costs along with a special one-time bonus of $31.0 to its non-bonus eligible employees in recognition of the benefits the Company is receiving from the passage of the Tax Cuts and Jobs Act of 2017 (TCJA). In addition, the Company incurred $4.2 of non-capitalized costs associated with the implementation of a major system as part of its LaunchPad business process improvement initiative.
During the six months ended June 30, 2017, the Company recorded net restructuring and other special charges of $43.0: $8.9 within LCD and $34.1 within CDD. The charges were comprised of $22.5 related to severance and other personnel costs along with $5.9 in costs associated with facility closures and general integration initiatives. The Company reversed previously established reserves of $0.4 in unused severance reserves and $0.1 in unused facility reserves. Also included in the net restructuring and other special charges is an impairment loss of $15.1 related to the termination of a software development project.
The Company incurred legal and other costs of $6.6 relating to the recently completed acquisitions. The Company also recorded $4.9 in consulting expenses relating to fees incurred as part of its integration and compensation analysis, along with $0.9 in short-term equity retention arrangements relating to the Covance Inc. acquisition. In addition, the Company incurred $5.5 of non-capitalized costs associated with the implementation of a major system as part of LaunchPad (all recorded in selling, general and administrative expenses).
The following represents the Company’s restructuring reserve activities for the period indicated:
 
LCD
 
CDD
 
 
 
Severance and Other
Employee Costs
Lease and Other
Facility Costs
 
Severance and Other
Employee Costs
Lease and Other
Facility Costs
 
Total
Balance as of December 31, 2017
$
1.7

$
10.1

 
$
8.3

$
34.6

 
$
54.7

Restructuring charges
7.4

2.2

 
15.7

2.6

 
27.9

Reduction of prior restructuring accruals
—

(0.5
)
 
(0.9
)
—

 
(1.4
)
Cash payments and other adjustments
(7.1
)
(4.1
)
 
(11.2
)
(5.7
)
 
(28.1
)
Balance as of June 30, 2018
$
2.0

$
7.7

 
$
11.9

$
31.5

 
$
53.1

Current
 

 

 
 
 
 
$
25.5

Non-current
 

 

 
 
 
 
27.6

 
 

 

 
 
 
 
$
53.1