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Other Operating Expenses, Net | 3 Months Ended
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Mar. 31, 2017
Other Income and Expenses [Abstract] |
OTHER OPERATING EXPENSES, NET | OTHER OPERATING EXPENSES, NET Other Operating Expenses, Net is comprised of the following (in thousands)
| Three Months Ended
| March 31, 2017 |  | April 1, 2016
2014 investments in capacity and capabilities | $ | 1,590 |  |  | $ | 4,153 |
Lake Region Medical consolidations | 706 |  |  | 2,359 |
Acquisition and integration costs | 4,820 |  |  | 9,965 |
Asset dispositions, severance and other | 4,556 |  |  | 4,526 |
Other consolidation and optimization initiatives | 99 |  |  | 137 |
Total other operating expenses, net | $ | 11,771 |  |  | $ | 21,140 |
2014 Investments in Capacity and Capabilities In 2014, the Company announced several initiatives to invest in capacity and capabilities and to better align its resources to meet its customers’ needs and drive organic growth and profitability. These included the following:
• | Functions performed at the Company’s facility in Plymouth, MN to manufacture catheters and introducers will transfer into the Company’s existing facility in Tijuana, Mexico. This initiative is expected to be substantially completed by the end of 2017 and is dependent upon our customers’ validation and qualification of the transferred products as well as regulatory approvals worldwide.
• | Functions performed at the Company’s facilities in Beaverton, OR and Raynham, MA to manufacture products for the portable medical market were transferred to a new facility in Tijuana, Mexico. Products manufactured at the Beaverton facility, which do not serve the portable medical market, were transferred to the Company’s Raynham facility. This initiative was substantially completed during the first half of 2016. The final closure of the Beaverton, OR site occurred in the fourth quarter of 2016.
• | The design engineering responsibilities previously performed at the Company’s Cleveland, OH facility were transferred to the Company’s facilities in Minnesota in 2015.
• | The realignment of the Company’s commercial sales operations was completed in 2015.
The total capital investment expected for these initiatives is between $24.0 million and $25.0 million, of which $23.4 million has been expended through March 31, 2017. Total restructuring charges expected to be incurred in connection with this realignment are between $52.0 million and $55.0 million, of which $50.7 million has been incurred through March 31, 2017. Expenses related to this initiative are primarily recorded within the Medical segment and include the following:
• | Severance and retention: $6.0 million - $7.0 million;
• | Accelerated depreciation and asset write-offs: $3.0 million - $3.0 million; and
• | Other: $43.0 million - $45.0 million
Other expenses primarily consist of costs to relocate certain equipment and personnel, duplicate personnel costs, excess overhead, disposal, and travel expenditures. All expenses are cash expenditures except accelerated depreciation and asset write-offs. The change in accrued liabilities related to the 2014 investments in capacity and capabilities is as follows (in thousands):
| Severance and Retention |  | Accelerated Depreciation/ Asset Write-offs |  | Other |  | Total
December 30, 2016 | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 66 |
Restructuring charges | 140 |  |  | — |  |  | 1,450 |  |  | 1,590 |
Cash payments | — |  |  | — |  |  | (1,450 | ) |  | (1,450 | )
March 31, 2017 | $ | 206 |  |  | $ | — |  |  | $ | — |  |  | $ | 206 |
(9.) OTHER OPERATING EXPENSES, NET (Continued) Lake Region Medical Consolidations In 2014, Lake Region Medical initiated plans to close its Arvada, CO site, consolidate its two Galway, Ireland sites into one facility, and other restructuring actions that will result in a reduction in staff across manufacturing and administrative functions at certain locations. This initiative was substantially completed by the end of 2016. During the third quarter of 2016, the Company announced the planned closure of its Clarence, NY facility. The machined component product lines manufactured in this facility will be transferred to other Integer locations in the U.S. The project is expected to be completed by the first quarter of 2018. The total capital investment expected to be incurred for these initiatives is between $5.0 million and $6.0 million, of which $2.5 million has been expended through March 31, 2017. Total expense expected to be incurred for these initiatives are between $20.0 million and $25.0 million, of which $11.3 million has been incurred through March 31, 2017. Expenses related to these initiatives have been and will be recorded within the Medical segment and are expected to include the following:
• | Severance and retention: $8.0 million - $10.0 million;
• | Accelerated depreciation and asset write-offs: approximately $1.0 million - $2.0 million; and
• | Other: $11.0 million - $13.0 million.
Other expenses primarily consist of production inefficiencies, moving, revalidation, personnel, training, consulting, and travel costs associated with these consolidation projects. All expenses are cash expenditures except accelerated depreciation and asset write-offs. The change in accrued liabilities related to the Lake Region Medical consolidation initiatives is as follows (in thousands):
| Severance and Retention |  | Accelerated Depreciation/ Asset Write-offs |  | Other |  | Total
December 30, 2016 | $ | 729 |  |  | $ | — |  |  | $ | 402 |  |  | $ | 1,131 |
Restructuring charges | 423 |  |  | — |  |  | 283 |  |  | 706 |
Cash payments | (440 | ) |  | — |  |  | (292 | ) |  | (732 | )
March 31, 2017 | $ | 712 |  |  | $ | — |  |  | $ | 393 |  |  | $ | 1,105 |
Acquisition and integration costs During the first quarter of 2017 and 2016, the Company incurred $4.8 million and $10.0 million respectively, in acquisition and integration costs related to the acquisition of Lake Region Medical, consisting primarily of integration costs. Integration costs primarily include professional, consulting, severance, retention, relocation, and travel costs. In addition, the first quarter of 2016 includes transaction costs, primarily related to change-in-control payments to former Lake Region Medical executives, as well as professional and consulting fees. As of March 31, 2017 and December 30, 2016, $2.0 million and $4.5 million of acquisition and integration costs related to the Lake Region Medical acquisition are accrued. Total expense expected to be incurred in connection with the integration of Lake Region Medical is between $40.0 million and $50.0 million, of which $37.3 million were incurred through March 31, 2017. Total capital expenditures for this initiative are expected to be between $20.0 million and $25.0 million, of which $9.5 million were incurred through March 31, 2017. Asset dispositions, severance and other During the first quarter of 2017 and 2016, the Company recorded gains and losses, respectively, in connection with various asset disposals and/or write-downs. The first quarter of 2017 amount also includes approximately $4.7 million in expense related to the Company’s leadership transitions, which were recorded within the corporate unallocated segment. The first quarter of 2016 amount also includes legal and professional costs in connection with the Spin-off of $4.3 million. Expenses related to the Spin-off were primarily recorded within the corporate unallocated and the Medical segment. Refer to Note 2 “Divestiture” for additional information on the Spin-off.

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- Definition The entire disclosure for other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that may be disclosed, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.3,6,7,9) -URI http://asc.fasb.org/extlink&oid=63488584&loc=d3e20235-122688 + Details
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