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Restructuring
9 Months Ended
Jul. 01, 2023
Restructuring Costs [Abstract]  
Restructuring and Related Activities Disclosure
(6) Restructuring

During the first quarter of fiscal 2022, the Company finalized its decision to close its Danbury, Connecticut facility where it manufactures its Breast Health capital equipment products. The manufacturing of the Breast Health capital equipment products and all other support services will be moved to the Company’s Newark, Delaware facility. In addition, research and development, sales and services support and administrative functions will be moved to the Newark, Delaware and Marlborough, Massachusetts facilities. The transition is expected to be completed by the second quarter of fiscal 2025. The majority of employees located in Danbury were given the option to relocate to the new locations. As a result of this plan, the Company expects a number of employees to not relocate resulting in their termination. The employees were notified of the closure during the first quarter of fiscal 2022 but were not informed of their termination and related severance benefits until the third quarter of fiscal 2022. The Company is recording severance benefits ratably over the required service period pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420). As a result, the Company recorded severance charges of $0.4 million and $1.4 million during the three and nine months ended July 1, 2023, respectively, and $1.6 million in fiscal 2022. The Company estimates that total severance charges, including retention, will be approximately $5.0 million.
During fiscal 2022 and 2023, the Company made various decisions to terminate certain personnel across all divisions in multiple departments as well as consolidate and close certain offices in Germany and transfer warehouse distribution in the United States to a third-party facility. For the three and nine months ended July 1, 2023, the Company recorded $1.7 million and $3.5 million, respectively, primarily for severance benefits under these actions. The charges were recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits, and ASC 420 depending on the employee and nature of the severance benefit. The Company estimates that total severance charges related to these actions will be approximately $5.0 million, and the actions are expected to be completed by September 2023.