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RESTRUCTURING AND ASSET IMPAIRMENTS | 6 Months Ended
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Jun. 29, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING AND ASSET IMPAIRMENTS The Company has undertaken restructuring actions impacting the reportable segments at various locations across North America, Europe and Asia. This includes workforce right-sizing actions resulting in severance and transition costs; and costs related to the consolidation of facilities resulting in asset impairment and accelerated depreciation charges. Generally, these actions are considered to be short-term in nature in response to recent macroeconomic impacts on the Company. During fiscal year 2023, the Company began to take restructuring actions as a result of these emerging business trends. The Company incurred restructuring charges of $18.0 million and $35.0 million during the three and six months ended June 29, 2024, respectively and approximately $65 million throughout fiscal year 2023 through June 29, 2024. The following table presents restructuring costs by reportable segment:
| Three Months Ended |  | Six Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
| (in thousands)
RMS | $ | 10,228 |  |  | $ | — |  |  | $ | 17,615 |  |  | $ | — |
DSA | 3,766 |  |  | — |  |  | 10,257 |  |  | (2) |
Manufacturing | 2,657 |  |  | 2,699 |  |  | 4,288 |  |  | 6,187 |
Unallocated corporate | 1,304 |  |  | — |  |  | 2,794 |  |  | — |
Total | $ | 17,955 |  |  | $ | 2,699 |  |  | $ | 34,954 |  |  | $ | 6,185 |
The following table presents restructuring costs as included within the Company’s unaudited condensed consolidated statements of income:
| June 29, 2024 |  | July 1, 2023
| Severance and Transition Costs |  | Asset Impairments and Other Costs |  | Total |  | Severance and Transition Costs |  | Asset Impairments and Other Costs |  | Total
| (in thousands)
Three Months Ended |  |  |  |  |  |  |  |  |  |  |
Cost of services provided (excluding amortization of intangible assets) | $ | 2,870 |  |  | $ | 1,926 |  |  | $ | 4,796 |  |  | $ | 2,361 |  |  | $ | — |  |  | $ | 2,361 |
Cost of products sold (excluding amortization of intangible assets) | 69 |  |  | 9,154 |  |  | 9,223 |  |  | 36 |  |  | 182 |  |  | 218 |
Selling, general and administrative | 2,958 |  |  | 978 |  |  | 3,936 |  |  | 120 |  |  | — |  |  | 120 |
Total restructuring costs | $ | 5,897 |  |  | $ | 12,058 |  |  | $ | 17,955 |  |  | $ | 2,517 |  |  | $ | 182 |  |  | $ | 2,699 |
Six Months Ended |  |  |  |  |  |  |  |  |  |  |
Cost of services provided (excluding amortization of intangible assets) | $ | 7,680 |  |  | $ | 3,034 |  |  | $ | 10,714 |  |  | $ | 2,928 |  |  | $ | — |  |  | $ | 2,928 |
Cost of products sold (excluding amortization of intangible assets) | 747 |  |  | 10,484 |  |  | 11,231 |  |  | 54 |  |  | 2,746 |  |  | 2,800 |
Selling, general and administrative | 6,507 |  |  | 6,502 |  |  | 13,009 |  |  | 449 |  |  | 8 |  |  | 457 |
Total restructuring costs | $ | 14,934 |  |  | $ | 20,020 |  |  | $ | 34,954 |  |  | $ | 3,431 |  |  | $ | 2,754 |  |  | $ | 6,185 |
Rollforward of Restructuring Activities The following table provides a rollforward for the Company’s accrued restructuring costs related to all restructuring activities:
| Severance and Transition Costs |  | Asset Impairments |  | Other Costs |  | Total
| (in thousands)
Six Months Ended June 29, 2024 |  |  |  |  |  |  |
Beginning balance | $ | 4,175 |  |  | $ | — |  |  | $ | 875 |  |  | $ | 5,050 |
Expense | 14,934 |  |  | 14,181 |  |  | 5,839 |  |  | 34,954 |
Payments / utilization | (9,323) |  |  | — |  |  | (5,067) |  |  | (14,390) |
Other non-cash adjustments | — |  |  | (14,181) |  |  | (772) |  |  | (14,953) |
Foreign currency adjustments | (57) |  |  | — |  |  | — |  |  | (57) |
Ending Balance | $ | 9,729 |  |  | $ | — |  |  | $ | 875 |  |  | $ | 10,604 |
Six Months Ended July 1, 2023 |  |  |  |  |  |  |
Beginning balance | $ | 356 |  |  | $ | — |  |  | $ | 944 |  |  | $ | 1,300 |
Expense | 3,431 |  |  | 2,479 |  |  | 275 |  |  | 6,185 |
Payments / utilization | (811) |  |  | — |  |  | (303) |  |  | (1,114) |
Other non-cash adjustments | — |  |  | (2,479) |  |  | — |  |  | (2,479) |
Foreign currency adjustments | 9 |  |  | — |  |  | — |  |  | 9 |
Ending Balance | $ | 2,985 |  |  | $ | — |  |  | $ | 916 |  |  | $ | 3,901 |
As of June 29, 2024 and December 30, 2023, $10.6 million and $5.1 million, respectively, of severance and other personnel related costs liabilities were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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