XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
12. Restructuring Costs (Notes)
 9 Months Ended
Sep. 30, 2018
Restructuring Costs [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] 12.    RESTRUCTURING COSTS

Restructuring Costs for European Reorganization

In May, 2016, we announced that we would take certain actions in our Europe geographic region designed to better align expenses to our revenue and gross margin profile and position us for improved operating performance. These actions, aligned with the evolution of our organization structure and coordinated with the implementation of our global single instance enterprise resource planning ("ERP") platform, are expected to be incurred through 2019. From May 2016 to September 30, 2018, total expenses were $13.0 million. The liability of $2.0 million as of September 30, 2018 was recorded in Accrued payroll and employee benefits in the Condensed Consolidated Balance Sheets.

The following table summarizes the activity of our European reorganization restructuring reserves for severance (in millions):
 
 
Life Science
 
Clinical Diagnostics
 
Total
Balances as of January 1, 2018:
 
$
2.2

 
$
4.1

 
$
6.3

Cash payments
 
(1.5
)
 
(2.7
)
 
(4.2
)
Foreign currency translation gains
 
—

 
(0.1
)
 
(0.1
)
Balances as of September 30, 2018:
 
$
0.7

 
$
1.3

 
$
2.0




Restructuring Costs for Termination of a Diagnostics Research and Development Project and a Facility Closure

In December 2017, we announced the termination of a diagnostics research and development project in Europe. From December 2017 to September 30, 2018, total expenses were $19.9 million. We recorded $(0.6) million and $(1.2) million of adjustments in restructuring charges related to severance and employee benefits, and exit costs for the three and nine months ended September 30, 2018, respectively. The adjustments were due to a decrease in severance accrual as a result of a reduction in the number of employees being terminated than originally estimated, and a decrease in exit costs as a result of actual legal settlement being lower than the estimate. In June 2018, we announced the closure of a manufacturing facility in Germany. As a result, we recorded $1.3 million of expense in restructuring charges related to severance and employee benefits for the three months ended June 30, 2018. No additional expenses or adjustments were recorded in the three months ended September 30, 2018. Restructuring charges for the termination of a diagnostics research and development project and the facility closure are both included in our Clinical Diagnostics segment's results of operations. The respective amounts recorded for the three and nine months ended September 30, 2018 were reflected in Cost of goods sold of $0 million and $1.3 million, and in Research and development expense of $(0.5) million and $(1.2) million in the Condensed Consolidated Statements of Income. The liability of $7.2 million as of September 30, 2018 for the termination of a diagnostics research and development project and the facility closure was recorded in Accrued payroll and employee benefits in the Condensed Consolidated Balance Sheets.

The following table summarizes the activity for the termination of the diagnostics research and development project and the facility closure restructuring reserves for severance and exit costs (in millions):

Balances as of January 1, 2018:
 
$
14.1

Charged to expense
 
1.3

Adjustment to expense
 
(1.2
)
Cash payments
 
(6.7
)
Foreign currency translation gains
 
(0.3
)
Balances as of September 30, 2018:
 
$
7.2