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Restructuring and Divestiture Charges | 6 Months Ended
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Mar. 30, 2013
Restructuring And Related Activities [Abstract] |
Restructuring and Divestiture Charges | (4) Restructuring and Divestiture Charges The Company also evaluates its operations for opportunities to improve operational effectiveness and efficiency, including facility and operations consolidation, and to better align expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions. These actions are described below. The following table displays charges taken related to restructuring actions in fiscal 2013 and 2012 and a rollforward of the charges to the accrued balances as of March 30, 2013.
Restructuring Charges |  | Abandonment of Adiana Product Line |  |  | Consolidation of Diagnostics Operations |  |  | Closure of Indianapolis Facility |  |  | Other Operating Cost Reductions |  |  | Total |
Fiscal 2012 charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-cash impairment charge |  | $ | 16,316 |  |  | $ | 585 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,901 |
Purchase orders and other contractual obligations |  |  | 3,099 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,099 |
Workforce reductions |  |  | 128 |  |  |  | 14,202 |  |  |  | 879 |  |  |  | 40 |  |  |  | 15,249 |
Facility closure costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 430 |  |  |  | 430 |
Other |  |  | — |  |  |  | — |  |  |  | 900 |  |  |  | — |  |  |  | 900 |
Total fiscal 2012 charges |  | $ | 19,543 |  |  | $ | 14,787 |  |  | $ | 1,779 |  |  | $ | 470 |  |  | $ | 36,579 |
Recorded to cost of product sales |  | $ | 19,064 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,064 |
Recorded to restructuring |  | $ | 479 |  |  | $ | 14,787 |  |  | $ | 1,779 |  |  | $ | 470 |  |  | $ | 17,515 |
Fiscal 2013 charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Workforce reductions |  | $ | — |  |  | $ | 12,536 |  |  | $ | 3,027 |  |  | $ | 636 |  |  | $ | 16,199 |
Facility closure costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 184 |  |  |  | 184 |
Other |  |  | — |  |  |  | — |  |  |  | 714 |  |  |  | — |  |  |  | 714 |
Total fiscal 2013 charges |  | $ | — |  |  | $ | 12,536 |  |  | $ | 3,741 |  |  | $ | 820 |  |  | $ | 17,097 |
Rollforward of Accrued Restructuring |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total fiscal 2012 charges |  | $ | 19,543 |  |  | $ | 14,787 |  |  | $ | 1,779 |  |  | $ | 470 |  |  | $ | 36,579 |
Non-cash impairment charges |  |  | (16,316 | ) |  |  | (585 | ) |  |  | — |  |  |  | — |  |  |  | (16,901 | )
Stock compensation |  |  | — |  |  |  | (3,500 | ) |  |  | — |  |  |  | — |  |  |  | (3,500 | )
Severance payments |  |  | (128 | ) |  |  | (2,423 | ) |  |  | — |  |  |  | (78 | ) |  |  | (2,629 | )
Payments related to purchase orders and other contractual obligations |  |  | (2,572 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,572 | )
Other payments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (430 | ) |  |  | (430 | )
Acquired |  |  | — |  |  |  | 83 |  |  |  | — |  |  |  | — |  |  |  | 83 |
Foreign exchange and other adjustments |  |  | — |  |  |  | 22 |  |  |  | — |  |  |  | 91 |  |  |  | 113 |
Balance at September 29, 2012 |  | $ | 527 |  |  | $ | 8,384 |  |  | $ | 1,779 |  |  | $ | 53 |  |  | $ | 10,743 |
Fiscal 2013 charges |  | $ | — |  |  | $ | 12,536 |  |  | $ | 3,741 |  |  | $ | 820 |  |  | $ | 17,097 |
Stock compensation |  |  | — |  |  |  | (6,079 | ) |  |  | — |  |  |  | — |  |  |  | (6,079 | )
Non-cash impairment charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (47 | ) |  |  | (47 | )
Severance payments |  |  | — |  |  |  | (11,370 | ) |  |  | (70 | ) |  |  | (53 | ) |  |  | (11,493 | )
Payments related to purchase orders and other contractual obligations |  |  | (527 | ) |  |  | — |  |  |  | (273 | ) |  |  | (28 | ) |  |  | (828 | )
Foreign exchange and other adjustments |  |  | — |  |  |  | (3 | ) |  |  | — |  |  |  | (19 | ) |  |  | (22 | )
Balance at March 30, 2013 |  | $ | — |  |  | $ | 3,468 |  |  | $ | 5,177 |  |  | $ | 726 |  |  | $ | 9,371 |
Abandonment of Adiana Product Line At the end of the second quarter of fiscal 2012, the Company decided to cease manufacturing, marketing and selling its Adiana system, which was a product line within the Company’s GYN Surgical reporting segment. Management determined that the product was not financially viable and would not become so in the foreseeable future. In addition, the Company settled its intellectual property litigation regarding the Adiana system with Conceptus, Inc., which did not result in any additional charges. In the second quarter of fiscal 2012, the Company recorded a charge of $18.3 million and recorded additional adjustments in fiscal 2012 resulting in an aggregate charge of $19.5 million. Of the total charge, $19.1 million was recorded within cost of product sales and $0.4 million was recorded in restructuring. The amount recorded in cost of product sales comprised impairment charges of $9.9 million to record inventory at its net realizable value, $6.5 million to write down certain manufacturing equipment and equipment placed at customer sites to its fair value that had no further utility, and $2.7 million for outstanding contractual purchase orders of raw materials and components that will not be utilized and other contractual obligations. In connection with this action, the Company terminated certain manufacturing and other personnel primarily at its Costa Rica location, resulting in severance charges of $0.1 million, and incurred other contractual charges of $0.3 million. All identified employees were terminated and paid as of September 29, 2012. Consolidation of Diagnostics Operations In connection with its acquisition of Gen-Probe, the Company implemented restructuring actions to consolidate its Diagnostics operations, such as streamlining product development initiatives, reducing overlapping functional areas such as sales, marketing and general and administrative functions, and consolidation of manufacturing resources, field services and support. As a result, the Company terminated certain employees from Gen-Probe and its legacy diagnostics business in research and development, sales, marketing, and general and administrative functions. The Company recorded severance and benefit charges in fiscal 2012 of $13.3 million related to this action pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420). The majority of these employees ceased working in the fourth quarter of fiscal 2012, and their full severance charge was recorded in the fourth quarter of fiscal 2012. In addition, certain of the terminated Gen-Probe employees had unvested stock options, which were accelerated at termination pursuant to the stock options’ original terms. As such, the severance charges in fiscal 2012 include $3.5 million of stock-based compensation expense. In the first quarter of fiscal 2013, the Company recorded $0.8 million of severance charges, including $0.2 million for stock-based compensation. In the second quarter of fiscal 2013, certain Gen-Probe executives including Carl Hull, Gen-Probe’s former Chairman, President and Chief Executive Officer, ceased employment. As a result, the Company recorded a charge of $9.7 million in the second quarter of fiscal 2013 related to the acceleration of certain retention payments and equity awards pursuant to the original terms of the related agreements. In addition, the Company is moving its legacy molecular diagnostics operations from Madison, Wisconsin to Gen-Probe’s facilities in San Diego, California. This transfer is expected to be finalized by the end of calendar 2014, and the majority of employees in Madison will be terminated in fiscal 2013 and 2014. The Company is recording severance and benefit charges pursuant to ASC 420 and estimates the total severance and benefits charge to be approximately $6.1 million, which will be recorded ratably over the estimated service period of the affected employees. The Company recorded $1.0 million and $2.0 million in the three and six months ended March 30, 2013, respectively, and $0.9 million in the fourth quarter of fiscal 2012. The Company also recorded non-cash charges of $0.6 million in the fourth quarter of fiscal 2012 as a result of exiting certain research projects. Additional charges, which are not expected to be significant, will be recorded as the manufacturing operation is transferred and the facility is closed down. These charges will be recorded as they are incurred. Closure of Indianapolis Facility In the fourth quarter of fiscal 2012, the Company finalized its decision to transfer production of the majority of its interventional breast products, which are included within the Breast Health reporting segment, from its Indianapolis facility to its facility in Costa Rica. The transfer is expected to be completed in the first half of calendar 2014, and all employees at the Indianapolis location will be terminated. The Company is recording severance and benefit charges pursuant to ASC 420 and estimates the total severance and benefits charge to be approximately $6.1 million, which will be recorded ratably over the estimated service period of the affected employees. The Company recorded $1.5 million and $3.0 million of severance benefits in the three and six months ended March 30, 2013, respectively, and $0.9 million in the fourth quarter of fiscal 2012. In addition, the Company recorded charges of $0.7 million in the first quarter of fiscal 2013 for additional miscellaneous items and $0.9 million in the fourth quarter of fiscal 2012 for amounts owed to the state of Indiana for employment credits. Additional charges, which are not expected to be significant, will be recorded as the manufacturing operation is transferred and the facility is closed down. These charges will be recorded as they are incurred. Other Operating Cost Reductions: Consolidation of Selenium Panel Coating Production During the third quarter of fiscal 2012, the Company finalized its decision to consolidate its Selenium panel coating process and transfer the production line to its Newark, Delaware facility from its Hitec-Imaging German subsidiary. This production line is included within the Breast Health segment. The transfer is expected to be completed in fiscal 2013. In connection with this consolidation plan, the Company is terminating certain employees, primarily manufacturing personnel. Severance charges will be recorded pursuant to ASC 420 because the severance benefits qualify as one-time employee termination benefits. The termination communications began in January 2013, and the Company recorded severance charges of $0.6 million in the second quarter of fiscal 2013. The Company expects to incur a total of approximately $1.0 million in severance charges in fiscal 2013 related to this action. Other The Company recorded a charge of $0.2 million in the second quarter of fiscal 2013 for a lease obligation charge and the write-off of related leaseholds. Divestiture The Company completed the sale of its LIFECODES business and recorded a net gain of $0.9 million in the second quarter of fiscal 2013, which is recorded within restructuring and divestiture net charges in the Statement of Operations.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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