Restructuring Costs

3 Months Ended

Mar. 31, 2024

13. RESTRUCTURING COSTS

In February 2021, we announced a strategy-driven restructuring plan in furtherance of our ongoing program to improve operating performance. The restructuring plan primarily impacted our operations in EMEA and included the elimination of certain positions, the consolidation of certain functions, and the relocation of certain manufacturing operations from EMEA to APAC. The restructuring plan was implemented in phases and is substantially complete as of March 31, 2024. The timing of the remaining employee termination benefit payments is in accordance with statutory requirements. The adjustments to expense recorded were primarily due to changes in the estimates of employee termination benefits. From February 2021 to March 31, 2024, total restructuring-related expenses were $71.8 million.

The following table summarizes the activity of our February 2021 plan accrued restructuring reserve (in millions):


	Life Science		Clinical Diagnostics		Total
Balances as of January 1, 2024:	$	0.2	$	12.8	$	13.0

Adjustment to expense	0.1		1.0		1.1
Cash payments	—		(3.2)		(3.2)
Foreign currency adjustments	—		(0.3)		(0.3)
Balances as of March 31, 2024:	$	0.3	$	10.3	$	10.6

During the fiscal year ended December 31, 2023, and continuing into the quarter ended March 31, 2024, management approved a restructuring action to further streamline and improve operating performance. The restructuring plan was approved and implemented in phases. The plan is expected to be substantially completed by the end of 2024.

During the three months ended March 31, 2024, a new phase of the restructuring plan was approved resulting in restructuring expenses of $5.3 million, representing estimated termination benefits to employees. The adjustments to expense recorded were primarily due to changes in the estimates of employee termination benefits on previously approved phases. The timing of the remaining employee termination benefit payments is in accordance with statutory requirements. Excluded from the accrued restructuring plan reserves are $1.6 million of restructuring expense related to the facility closure costs impacting the Life Science segment. From February 2023 to March 31, 2024, total restructuring-related expenses were $31.8 million, primarily representing estimated termination benefits to employees.

The following table summarizes the activity of our 2023 accrued restructuring plan reserve (in millions):


	Life Science		Clinical Diagnostics		Total
Balances as of January 1, 2024:	$	3.0	$	7.8	$	10.8
Charged to expense - employee termination benefits	2.1		3.2		5.3
Adjustment to expense	(0.3)		(0.6)		(0.9)
Cash payments	(2.4)		(4.6)		(7.0)
Foreign currency adjustments	—		(0.2)		(0.2)
Balances as of March 31, 2024:	$	2.4	$	5.6	$	8.0

Combined, the accrued restructuring plan reserve of $18.7 million as of March 31, 2024 was recorded in Accrued payroll and employee benefits in the condensed consolidated balance sheets. The amounts reflected in Cost of goods sold, Selling, general and administrative expense and Research and development expense for the three months ended March 31, 2024 were $0.5 million, $4.4 million and $2.2 million, respectively, in the condensed consolidated statements of income.