XML 42 R17.htm IDEA: XBRL DOCUMENT
v2.4.1.9

RESTRUCTURING | 9 Months Ended
--- | ---
Dec. 27, 2014
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING On an ongoing basis, we review the global economy, the healthcare industry and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business. On May 1, 2013, we announced that our Board of Directors approved a plan to pursue identified Value Creation and Capture ("VCC") opportunities. These include: (i) investment in product line extensions, next generation products and growth platforms; (ii) enhancement of commercial execution capabilities by implementing go-to-market and other strategies to enable global profitable revenue growth; and (iii) transformation of the manufacturing network to best support these commercial strategies while optimizing expense levels. Collectively, these are opportunities to position us for optimal growth and increased competitiveness. Our manufacturing network transformation plan, part of our larger VCC activities previously discussed, includes (i) discontinuing manufacturing activities at our Braintree, Massachusetts, Ascoli-Piceno, Italy and Bothwell, Scotland facilities, (ii) creating a technology center of excellence for product development in Braintree, Massachusetts, (iii) expanding of our current facility in Tijuana, Mexico, (iv) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (v) building a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. We estimate we will incur approximately $69.0 million in restructuring and restructuring related expense and spend approximately $59.0 million on these initiatives in fiscal 2015. We estimate we will incur an additional $10.0 million to $15.0 million to complete these initiatives through fiscal 2017. The following summarizes the restructuring costs for the nine months ended December 27, 2014 and December 28, 2013:
| Nine Months Ended December 27, 2014
(In thousands) |  | Restructuring Accrual Balance at March 29, 2014 |  | Restructuring Costs Incurred |  | Less Payments |  | Less Non-Cash Adjustments |  | Restructuring Accrual Balance at December 27, 2014
Severance and other employee costs |  | $ | 22,908 |  |  | $ | 15,633 |  |  | $ | (21,785 | ) |  | $ | — |  |  | $ | 16,756 |
Other costs |  | 728 |  |  | 12,044 |  |  | (12,527 | ) |  | — |  |  | 245 |
Accelerated depreciation |  | — |  |  | 1,158 |  |  | — |  |  | (1,158 | ) |  | — |
Asset write-down |  | — |  |  | 295 |  |  | — |  |  | (295 | ) |  | — |
Total |  | $ | 23,636 |  |  | $ | 29,130 |  |  | $ | (34,312 | ) |  | $ | (1,453 | ) |  | $ | 17,001 |
| Nine Months Ended December 28, 2013
(in thousands) |  | Restructuring Accrual Balance at March 30, 2013 |  | Restructuring Costs Incurred |  | Less Payments |  | Less Non-Cash Adjustments |  | Restructuring Accrual Balance at December 28, 2013
Severance and other employee costs |  | $ | 3,089 |  |  | $ | 28,189 |  |  | $ | (9,690 | ) |  | $ | — |  |  | $ | 21,588 |
Other costs |  | 173 |  |  | 9,905 |  |  | (9,566 | ) |  | — |  |  | 512 |
Accelerated depreciation |  | — |  |  | 1,757 |  |  | — |  |  | (1,757 | ) |  | — |
Asset write-down |  | — |  |  | 915 |  |  | — |  |  | (915 | ) |  | — |
|  | $ | 3,262 |  |  | $ | 40,766 |  |  | $ | (19,256 | ) |  | $ | (2,672 | ) |  | $ | 22,100 |
We deployed significant financial resources for these activities. Many of the costs necessary to complete the VCC initiatives, such as severance and other plant closing costs, qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We incurred $29.1 million in severance, asset write-downs and other restructuring charges during the nine months ended December 27, 2014. In addition, we also incurred $22.1 million of costs that do not constitute restructuring under ASC 420, which we refer to as "Transformation Costs". These costs consist primarily of expenditures directly related to our transformation activities including program management, product line transfer teams and related costs, infrastructure related costs, accelerated depreciation and asset disposals. The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and interest and other expense in our Consolidated Statements of Income and Comprehensive Income for the periods presented. The majority of expenses recorded as Transformation Costs in the fiscal 2014 relate to the integration of the whole blood acquisition. Transformation Costs in fiscal 2015 are associated with our VCC initiatives.
Transformation costs |  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013
Transformation and other costs |  | $ | 5,892 |  |  | $ | 6,306 |  |  | $ | 20,877 |  |  | $ | 26,389 |
Accelerated depreciation |  | 351 |  |  | 653 |  |  | 769 |  |  | 1,938 |
Asset disposal |  | 471 |  |  | 36 |  |  | 471 |  |  | 796 |
Total |  | $ | 6,714 |  |  | $ | 6,995 |  |  | $ | 22,117 |  |  | $ | 29,123 |
Restructuring costs |  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013
Severance and other employee costs |  | $ | 2,887 |  |  | $ | 5,348 |  |  | $ | 15,633 |  |  | $ | 28,189 |
Other costs |  | 2,691 |  |  | 4,588 |  |  | 12,044 |  |  | 9,905 |
Accelerated depreciation |  | 418 |  |  | 569 |  |  | 1,158 |  |  | 1,757 |
Asset disposal |  | 199 |  |  | — |  |  | 295 |  |  | 915 |
Total |  | $ | 6,195 |  |  | $ | 10,505 |  |  | $ | 29,130 |  |  | $ | 40,766 |
Total restructuring and transformation |  | $ | 12,909 |  |  | $ | 17,500 |  |  | $ | 51,247 |  |  | $ | 69,889 |

X
- Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration