Restructuring Charges

12 Months Ended

Sep. 28, 2024

Restructuring and Related Activities [Abstract]

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. As a result of these assessments, the Company has undertaken various restructuring actions which are described below. The following table displays charges taken related to restructuring actions in fiscal 2024, 2023 and 2022 and a rollforward of the charges to the accrued balances as of September 28, 2024:


	Fiscal 2024 Actions		Fiscal 2023 Actions		Fiscal 2022 Actions		Other		Total
Restructuring Charges







Fiscal 2022 charges:
Workforce reductions	$	—	$	—	$	2.6	$	(0.7)	$	1.9
Facility closure costs	—		—		0.5		—		0.5

Fiscal 2022 restructuring charges	$	—	$	—	$	3.1	$	(0.7)	$	2.4
Fiscal 2023 charges:
Workforce reductions	$	—	$	5.5	$	6.0	$	—	$	11.5
Other costs	—		—		0.5		—		0.5
Fiscal 2023 restructuring charges	$	—	$	5.5	$	6.5	$	—	$	12.0
Fiscal 2024 charges:
Lease asset impairment charge	$	12.5	$	—	$	—	$	—	$	12.5
Accelerated depreciation expense	7.2		—		—		—		7.2
Workforce reductions	15.8		—		3.9		—		19.7
Other costs	1.2		—		0.5		—		1.7
Fiscal 2024 restructuring charges	$	36.7	$	—	$	4.4	$	—	$	41.1


	Fiscal 2024 Actions		Fiscal 2023 Actions		Fiscal 2022 Actions		Other		Total
Rollforward of Accrued Restructuring
Balance as of September 25, 2021	$	—	$	—	$	—	$	4.1	$	4.1

Fiscal 2022 restructuring charges	$	—	$	—	$	3.1	$	(0.7)	$	2.4

Severance payments and adjustments	—		—		(0.4)		(3.0)		(3.4)

Balance as of September 24, 2022	$	—	$	—	$	2.7	$	0.4	$	3.1

Fiscal 2023 restructuring charges	$	—	$	5.5	$	6.5	$	—	$	12.0

Severance payments and adjustments	—		(3.2)		(2.5)		(0.4)		(6.1)

Balance as of September 30, 2023	$	—	$	2.3	$	6.7	$	—	$	9.0

Fiscal 2024 restructuring charges	$	36.7	$	—	$	4.4	$	—	$	41.1

Non-cash impairment charge	(12.5)		—		—		—		(12.5)
Non-cash accelerated depreciation charge	(7.2)		—		—		—		(7.2)
Severance payments and adjustments	(11.5)		(2.0)		(4.9)		—		(18.4)

Balance as of September 28, 2024	$	5.5	$	0.3	$	6.2	$	—	$	12.0

Fiscal 2024 Actions

During the first quarter of fiscal 2024, the Company further refined its strategy for the Mobidiag business, which is within the Diagnostics reportable segment. The strategy change included the decision to discontinue the manufacture and sale of certain products, closure of its facilities in Finland and France, and to move the development activities and operations to the Company’s San Diego, California location. As such, the Company determined certain fixed assets lives should be shortened and that lease assets were impaired at the affected facilities and recorded accelerated depreciation of $7.2 million and a lease asset impairment charge of $12.5 million. In connection with this plan, the Company finalized its decision to terminate the employees at these locations, totaling 190. The Company initiated discussions with the respective Works Councils at the end of the first quarter of fiscal 2024. In addition, the Company recorded the minimum statutory severance benefit for the employees located in France of $1.8 million pursuant to ASC 712, Compensation Nonretirement Postemployment Benefits (ASC 712), at this time. During the second quarter of fiscal 2024, the Company finalized its negotiations with the respective Works Councils and communicated the termination and related severance benefits to the affected employees. The Company has estimated the total severance charges, including accelerated stock compensation, will be approximately $13.9 million. The majority of the severance benefits will be recorded pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420), which requires the severance benefits to be recognized ratably over the service period to obtain such benefits. The employees will cease employment in phases. As a result, the Company recorded total severance charges of $11.9 million in fiscal 2024. This action is expected to be completed by the second quarter of fiscal 2025.

During fiscal 2024, the Company made various decisions to contain costs and to terminate approximately 34 employees primarily in Breast Health and Diagnostics, within sales, marketing and research and development. The Company recorded $3.9 million for severance benefits under these actions pursuant to ASC 420. These actions were completed as of September 28, 2024.

Fiscal 2023 and 2022 Actions

During fiscal 2023 and 2022, the Company made various decisions to terminate approximately 128 employees 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. During fiscal 2023 and 2022, the Company recorded $9.4 million and $0.3 million, respectively, primarily for severance benefits under these actions, and $0.5 million in property closure costs in fiscal 2022. The charges were recorded pursuant to ASC 712 and ASC 420 depending on the employee and nature of the severance benefit. These actions were completed as of the end of fiscal 2023.

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 are in the process of being transferred to the Company's Newark, Delaware facility. The transition is expected to be completed by the third quarter of fiscal 2025. In addition, research and development, sales and services support and administrative functions have been transferred to the Newark, Delaware and Marlborough, Massachusetts facilities. The employees were notified of the closure during the first quarter of fiscal 2022, and the majority of employees located in Danbury were given the option to relocate to the new locations. The Company is recording severance benefits ratably over the required service period pursuant to ASC 420. As a result, the Company recorded severance and benefits charges of $3.9 million, $2.1 million, and $1.6 million during fiscal 2024, 2023 and 2022, respectively. The Company estimates that total severance and benefits charges, including retention and relocation and outplacement costs, will be approximately $8.6 million.