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Restructuring and Divestiture Charges | 6 Months Ended
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Mar. 28, 2015
Restructuring and Related Activities [Abstract] |
Restructuring and Divestiture Charges | Restructuring and Divestiture Charges The Company evaluates its operations for opportunities to improve operational effectiveness and efficiency, including facility and operations consolidation, and to better align expenses with revenues. In addition, the Company continually assesses its management structure. As a result of these assessments, the Company has undertaken various restructuring actions, which are described below. The following table displays charges taken in fiscal 2015 and 2014 related to these actions and a rollforward of the accrued balances from September 27, 2014 to March 28, 2015:
| Consolidation of Diagnostics Operations |  | Fiscal 2015 Actions |  | Fiscal 2014 Actions |  | Other Operating Cost Reductions |  | Total
Fiscal 2014 charges: |  |  |  |  |  |  |  |  |
Workforce reductions | $ | 2.9 |  |  | $ | — |  |  | $ | 29.5 |  |  | $ | 9.8 |  |  | $ | 42.2 |
Non-cash impairment charge | — |  |  | — |  |  | — |  |  | 3.1 |  |  | 3.1 |
Facility closure costs | — |  |  | — |  |  | — |  |  | 0.6 |  |  | 0.6 |
Other | 0.1 |  |  | — |  |  | — |  |  | 0.2 |  |  | 0.3 |
Fiscal 2014 restructuring charges | $ | 3.0 |  |  | $ | — |  |  | $ | 29.5 |  |  | $ | 13.7 |  |  | $ | 46.2 |
Divestiture net charges |  |  |  |  |  |  |  |  | 5.5 |
Fiscal 2014 restructuring and divestiture charges |  |  |  |  |  |  |  |  | $ | 51.7 |
Fiscal 2015 charges: |  |  |  |  |  |  |  |  |
Workforce reductions | $ | 0.1 |  |  | $ | 3.0 |  |  | $ | 5.9 |  |  | $ | 0.2 |  |  | $ | 9.2 |
Facility closure costs | 0.4 |  |  | — |  |  | 0.2 |  |  | 0.2 |  |  | 0.8 |
Fiscal 2015 restructuring and divestiture charges | $ | 0.5 |  |  | $ | 3.0 |  |  | $ | 6.1 |  |  | $ | 0.4 |  |  | $ | 10.0 |
| Consolidation of Diagnostics Operations |  | Fiscal 2015 Actions |  | Fiscal 2014 Actions |  | Other Operating Cost Reductions |  | Total
Rollforward of Accrued Restructuring |  |  |  |  |  |  |  |  |
Balance as of September 27, 2014 | $ | 3.0 |  |  | $ | — |  |  | $ | 12.0 |  |  | $ | 1.9 |  |  | $ | 16.9 |
Fiscal 2015 restructuring charges | 0.5 |  |  | 3.0 |  |  | 6.1 |  |  | 0.4 |  |  | 10.0 |
Stock-based compensation | — |  |  | (0.1 | ) |  | — |  |  | — |  |  | (0.1 | )
Severance payments | (2.8 | ) |  | (1.3 | ) |  | (11.4 | ) |  | (1.9 | ) |  | (17.4 | )
Other payments | (0.5 | ) |  | — |  |  | (0.7 | ) |  | (0.3 | ) |  | (1.5 | )
Balance as of March 28, 2015 | $ | 0.2 |  |  | $ | 1.6 |  |  | $ | 6.0 |  |  | $ | 0.1 |  |  | $ | 7.9 |
Consolidation of Diagnostics Operations In connection with its acquisition of Gen-Probe Incorporated (“Gen-Probe”) in August 2012, the Company implemented restructuring actions to consolidate its Diagnostics operations, including streamlining product development initiatives, reducing overlapping functional areas in sales, marketing and general and administrative functions, and consolidating 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 also decided to move its legacy molecular diagnostics operations from Madison, Wisconsin to Gen-Probe’s facilities in San Diego, California. This transfer was completed at the end of fiscal 2014, and as a result, many of the employees in Madison were terminated. The Company recorded severance and benefit charges pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420), beginning in fiscal 2012 through the first quarter of fiscal 2015. The Company recorded $3.0 million for severance and benefits in fiscal 2014. The Company recorded $0.5 million for facility closure costs and severance and benefits in the six months ended March 28, 2015 and $0.9 million and $1.7 million for severance and benefits in the three and six months ended March 29, 2014, respectively. Fiscal 2015 Actions In the first and second quarters of fiscal 2015, the Company continued to make executive management changes resulting in the termination of certain executives and employees on a worldwide basis. In addition, the Company continued to consolidate and close certain international offices. Severance and benefit charges under these actions have been recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits (ASC 712), and ASC 420 depending on the circumstances, and the Company recorded severance and benefit charges of $0.5 million and $3.0 million in the three and six months ended March 28, 2015. Included in the charge is $0.1 million of stock-based compensation for the acceleration of certain equity awards pursuant to their original terms. Fiscal 2014 Actions During the first quarter of fiscal 2014, the Company implemented a cost reduction initiative comprised of reducing headcount and evaluating research projects and operating costs. In connection with this plan, the Company terminated certain employees on a worldwide basis. The Company recorded the severance and benefit charges pursuant to ASC 420 and ASC 712 depending on the circumstances. The Company recorded $6.3 million of severance and benefit charges in the first quarter of fiscal 2014, which included $0.4 million of stock-based compensation. On December 6, 2013, Stephen P. MacMillan was appointed as President, Chief Executive Officer and a director of the Company. The employment of John W. Cumming, the Company’s prior President and Chief Executive Officer, terminated upon Mr. MacMillan’s appointment. The Company provided separation benefits to Mr. Cumming pursuant to his employment letter dated July 18, 2013 resulting in a charge of $6.6 million in the first quarter of fiscal 2014, which included $4.4 million of stock-based compensation related to the acceleration of all of Mr. Cumming’s outstanding equity awards in accordance with the existing terms of Mr. Cumming’s stock-based payment arrangements. An additional $0.2 million was recorded in the second quarter of fiscal 2014 related to this action. In the second, third, and fourth quarters of fiscal 2014, the Company continued to make executive management changes and implemented additional cost reduction initiatives resulting in the termination of certain executives and employees on a worldwide basis. In addition, in the fourth quarter of fiscal 2014, the Company decided to consolidate and close certain international offices. Severance and benefit charges under these actions were recorded pursuant to ASC 420 and ASC 712 depending on the circumstances, and the Company recorded severance and benefit charges of $16.6 million in fiscal 2014. Included in the charge was $1.8 million of stock-based compensation for the modification of the terms of equity awards to certain employees. Of these charges, $3.0 million was recorded in the second quarter of fiscal 2014 for severance and benefits pursuant to ASC 712. The Company recorded $4.5 million for severance and benefits and $0.2 million for facility closure costs in the first quarter of fiscal 2015 related to this action and $1.4 million for severance and benefits in the second quarter of fiscal 2015. Charges related to lease obligations will be recorded upon either the cease-use date or execution of a termination contract. Other Operating Cost Reductions: Hitec-Imaging Organic Photoconductor Manufacturing Line Shut-down In the fourth quarter of fiscal 2013, in connection with the Company’s cost reduction initiatives, the Company decided to shut-down its Hitec-Imaging organic photoconductor manufacturing line located in Germany. This production line is included within the Breast Health segment. As a result, the Company terminated certain employees, primarily in manufacturing, in fiscal 2014. During the first quarter of fiscal 2014, the Company completed its negotiations with the local Works Council to determine severance benefits for the approximately 95 affected employees. The Company recorded severance and benefit charges pursuant to ASC 420 and estimates the total severance and related charges related to this action will be approximately $9.3 million. The Company began notifying the affected employees in the second quarter of fiscal 2014, and as such no charges were recorded in the first quarter of fiscal 2014. The Company recorded charges of $8.7 million in fiscal 2014 in connection with terminating these employees of which $7.3 million was recorded in the second quarter of fiscal 2014. In fiscal 2015, the Company recorded $0.4 million for severance and benefits and facility closure costs. The Company also recorded an impairment charge of $3.1 million in the first quarter of fiscal 2014 to record certain buildings at this location to their estimated fair value. Divestitures In the fourth quarter of fiscal 2014, the Company completed the sale of its MRI breast coils product line and recorded a loss on disposal of $5.3 million. The Company is providing certain transition services through April 2015, including the manufacturing and sale of inventory to the buyer.

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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 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=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: 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 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=27011515&loc=d3e140904-122747 + Details
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