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Restructuring, Acquisition, and Related Costs
3 Months Ended
Mar. 28, 2025
Restructuring and Related Activities [Abstract]  
Restructuring, Acquisition, and Related Costs

13. Restructuring, Acquisition, and Related Costs

The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands):

 

Three Months Ended

 

 

March 28,

 

 

March 29,

 

 

2025

 

 

2024

 

2024 restructuring

$

590

 

 

$

548

 

2020 restructuring

 

(3,595

)

 

 

 

Total restructuring charges

 

(3,005

)

 

 

548

 

Acquisition and related charges

 

550

 

 

 

1,735

 

Total restructuring, acquisition, and related costs

$

(2,455

)

 

$

2,283

 

2024 Restructuring

As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the three months ended March 28, 2025, the Company recorded $0.6 million in severance, facility related and other charges in connection with the 2024 restructuring program. As of March 28, 2025, the Company had incurred cumulative costs of $11.1 million related to this restructuring program. The Company anticipates substantially completing the 2024 restructuring program by the end of 2025 and expects to incur additional restructuring charges of $5.0 million to $6.0 million related to the 2024 restructuring program.

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Three Months Ended

 

 

March 28,

 

 

March 29,

 

 

2025

 

 

2024

 

Automation Enabling Technologies

$

486

 

 

$

279

 

Medical Solutions

 

82

 

 

 

206

 

Unallocated

 

22

 

 

 

63

 

Total

$

590

 

 

$

548

 

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of March 28, 2025, the Company had incurred cumulative costs of $13.1 million related to the 2020 restructuring program. The 2020 restructuring program activities were completed in the fourth quarter of 2023. In January 2025, the Company sold a facility from the 2020 restructuring program and recorded a $3.6 million gain in the Company’s Automation Enabling Technologies segment.

Roll-forward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Facility Sale

 

 

Other

 

Balance at December 31, 2024

$

6,751

 

 

$

5,690

 

 

$

1,061

 

 

$

 

 

$

 

Restructuring charges

 

(3,005

)

 

 

(107

)

 

 

719

 

 

 

(4,325

)

 

 

708

 

Cash payments

 

4,444

 

 

 

(581

)

 

 

(147

)

 

 

5,537

 

 

 

(365

)

Non-cash write-offs and other adjustments

 

(1,679

)

 

 

162

 

 

 

(629

)

 

 

(1,212

)

 

 

 

Balance at March 28, 2025

$

6,511

 

 

$

5,164

 

 

$

1,004

 

 

$

 

 

$

343

 

Acquisition and Related Charges

Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $0.6 million for three months ended March 28, 2025, and $1.7 million for the three months ended March 29, 2024. The majority of acquisition and related costs for the three months ended March 28, 2025 and the three months ended March 29, 2024 were included in unallocated costs.