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RESTRUCTURING | 12 Months Ended
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Apr. 02, 2016
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. During the first quarter of fiscal 2017, in connection with our global strategic review, we launched the first phase of a restructuring program designed to reposition our organization and improve our cost structure. The first phase includes both a reduction of headcount and operating costs as well as projects to simplify product lines. We may also take additional steps to modify our manufacturing operations to reflect our strategic direction. We expect to incur approximately $26 million of restructuring and transformation charges, comprised of $17 million in termination benefits and $9 million in other related exit costs. Substantially all of these charges will result in future cash outlays and are expected to be incurred during fiscal 2017. Savings from this program are estimated to be approximately $40 million in fiscal 2017. Subsequent phases of the program may require restructuring charges in future fiscal years. In fiscal 2016, we completed our Value Creation and Capture (“VCC”) opportunities initiative. This initiative included (i) discontinuation of manufacturing activities at our Ascoli-Piceno, Italy and Braintree, Massachusetts facilities, (ii) expansion of our current facility in Tijuana, Mexico, (iii) transfer of all equipment production to our contract manufacturer, Sanmina Corporation, and (iv) consolidation of the manufacturing of product formerly produced in the U.S. and Italy to our new manufacturing facility in Penang, Malaysia. We continue to manufacture in Bothwell, Scotland. The cumulative restructuring charges incurred as a result of the VCC initiative were $100.1 million. The following summarizes the restructuring activity for the fiscal year ended April 2, 2016, March 28, 2015, and March 29, 2014, respectively:
(In thousands) | Severance and Other Employee Costs |  | Other Costs |  | Accelerated Depreciation |  | Asset Write Down |  | Total Restructuring
Balance at March 30, 2013 | $ | 3,089 |  |  | $ | 173 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,262 |
Costs incurred | 31,492 |  |  | 14,254 |  |  | 2,390 |  |  | 915 |  |  | 49,051 |
Payments | (11,673 | ) |  | (13,699 | ) |  | — |  |  | — |  |  | (25,372 | )
Non-cash adjustments | — |  |  | — |  |  | (2,390 | ) |  | (915 | ) |  | (3,305 | )
Balance at March 29, 2014 | $ | 22,908 |  |  | $ | 728 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,636 |
Costs incurred | 19,879 |  |  | 15,362 |  |  | 1,326 |  |  | 296 |  |  | 36,863 |
Payments | (26,394 | ) |  | (15,871 | ) |  | — |  |  | — |  |  | (42,265 | )
Non-cash adjustments | — |  |  | — |  |  | (1,326 | ) |  | (296 | ) |  | (1,622 | )
Balance at March 28, 2015 | $ | 16,393 |  |  | $ | 219 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,612 |
Costs incurred | 10,707 |  |  | 7,846 |  |  | 1,469 |  |  | 3,033 |  |  | 23,055 |
Payments | (18,348 | ) |  | (8,065 | ) |  | — |  |  | — |  |  | (26,413 | )
Non-cash adjustments | — |  |  | — |  |  | (1,469 | ) |  | (3,033 | ) |  | (4,502 | )
Balance at April 2, 2016 | $ | 8,752 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,752 |
The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of (loss) income. Total restructuring charges for fiscal 2016 include a $3.0 million asset write down to fair value related to land, buildings and related equipment for a property we plan to dispose of, as discussed in Note 12, Property Plant and Equipment. As of April 2, 2016, we had a restructuring liability of $8.8 million, of which, approximately $8.1 million is payable within the next twelve months. In addition to the restructuring expenses included in the table above, we also incurred $19.2 million of costs that do not constitute as 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. These costs exclude the impact of contingent consideration of $4.9 million which was reversed during the third quarter of fiscal 2016 and is presented within the contingent consideration (income) expense line on the consolidated statements of (loss) income. The contingent consideration reversal of $2.9 million and an insignificant amount were also excluded for fiscal 2015 and fiscal 2014, respectively. The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and other expense, net in our consolidated statements of (loss) income for the periods presented.
Transformation costs |  |  |  |  |
(in thousands) | 2016 |  | 2015 |  | 2014
Transformation and other costs | $ | 17,377 |  |  | $ | 26,979 |  |  | $ | 30,656 |
Accelerated depreciation | 155 |  |  | 930 |  |  | 4,203 |
Asset disposal | 1,697 |  |  | 4,925 |  |  | 796 |
Total | $ | 19,229 |  |  | $ | 32,834 |  |  | $ | 35,655 |
The tables below present restructuring and transformation costs by reportable segment:
Restructuring costs |  |  |  |  |
(in thousands) | 2016 |  | 2015 |  | 2014
Japan | $ | 9 |  |  | $ | 258 |  |  | $ | 372 |
EMEA | 3,210 |  |  | 3,310 |  |  | 1,444 |
North America Plasma | — |  |  | 360 |  |  | 42 |
All Other | 19,836 |  |  | 32,935 |  |  | 47,193 |
Total | $ | 23,055 |  |  | $ | 36,863 |  |  | $ | 49,051 |
Transformation costs |  |  |  |  |
(in thousands) | 2016 |  | 2015 |  | 2014
Japan | $ | 416 |  |  | $ | 158 |  |  | $ | 131 |
EMEA | 961 |  |  | 838 |  |  | 1,260 |
North America Plasma | — |  |  | 28 |  |  | — |
All Other | 17,852 |  |  | 31,810 |  |  | 34,264 |
Total | $ | 19,229 |  |  | $ | 32,834 |  |  | $ | 35,655 |
Total restructuring and transformation | $ | 42,284 |  |  | $ | 69,697 |  |  | $ | 84,706 |

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- 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 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: 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 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 + Details
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