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 committed to a plan to pursue identified Value Creation and Capture initiatives ("VCC"). These opportunities include investment in product line extensions and next generation products, enhancement of commercial capabilities and a transformation of our manufacturing network. The transformation of our manufacturing network is expected to be completed in fiscal 2017 and included changes to the manufacturing footprint and supply chain structure (the "Network Plan"). To date, we have (i) discontinued manufacturing activities at our Ascoli-Piceno, Italy and Bothwell, Scotland facilities, (ii) expanded our facility in Tijuana, Mexico, (iii) engaged Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (iv) built a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. We expect to complete the transfer of manufacturing activities from the Braintree, Massachusetts facility by the end of fiscal 2016 and the Bothwell, Scotland facility by early fiscal 2017. See the Liquidity and Capital Resources discussion of the Management Discussion and Analysis of Financial Condition and Results of Operations for further discussion of the costs of these activities.

We estimate we will incur approximately $45.0 million in restructuring and restructuring related expense in 2016.

The following summarizes the restructuring costs for the six months ended September 26, 2015 and September 27, 2014:



	Six Months Ended September 26, 2015
(In thousands)	Restructuring Accrual Balance at March 28, 2015		Restructuring Costs Incurred		Less Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at September 26, 2015
Severance and other employee costs	$	16,393	$	7,960	$	(11,547	)	$	—		$	12,806
Other costs	219		5,576		(4,841		)	—			954
Accelerated depreciation	—		843		—			(843		)	—
Asset write-down	—		4		—			(4		)	—
Total	$	16,612	$	14,383	$	(16,388	)	$	(847	)	$	13,760



	Six Months Ended September 27, 2014
(in thousands)	Restructuring Accrual Balance at March 29, 2014		Restructuring Costs Incurred		Less Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at September 27, 2014
Severance and other employee costs	$	22,908	$	12,743	$	(12,680	)	$	—		$	22,971
Other costs	728		9,354		(9,704		)	—			378
Accelerated depreciation	—		740		—			(740		)	—
Asset write-down	—		96		—			(96		)	—
	$	23,636	$	22,933	$	(22,384	)	$	(836	)	$	23,349

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 $14.4 million in severance, asset write-downs and other restructuring charges during the six months ended September 26, 2015. In addition, we also incurred $7.1 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 (Loss) Income for the periods presented.



Transformation costs	Three Months Ended				Six Months Ended
(in thousands)	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Transformation and other costs	$	1,683	$	7,225	$	7,009	$	14,987
Accelerated depreciation	45		168		76		418
Total	$	1,728	$	7,393	$	7,085	$	15,405



Restructuring costs	Three Months Ended				Six Months Ended
(in thousands)	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Severance and other employee costs	$	1,101	$	3,222	$	7,960	$	12,743
Other costs	3,401		4,249		5,576		9,354
Accelerated depreciation	422		481		843		740
Asset disposal	—		—		4		96
Total	$	4,924	$	7,952	$	14,383	$	22,933

Total restructuring and transformation	$	6,652	$	15,345	$	21,468	$	38,338