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 Braintree, Massachusetts 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 Bothwell, Scotland facility by the middle of fiscal 2017. This transition will complete our VCC initiatives announced on May 1, 2013. 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.

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



	Nine Months Ended December 26, 2015
(In thousands)	Restructuring Accrual Balance at March 28, 2015		Restructuring Costs Incurred		Less Payments			Less Non-Cash Adjustments			Restructuring Accrual Balance at December 26, 2015
Severance and other employee costs	$	16,393	$	9,141	$	(16,150	)	$	—		$	9,384
Other costs	219		7,846		(7,188		)	—			877
Accelerated depreciation	—		1,258		—			(1,258		)	—
Asset write-down	—		4		—			(4		)	—
Total	$	16,612	$	18,249	$	(23,338	)	$	(1,262	)	$	10,261



	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		)	—
	$	23,636	$	29,130	$	(34,312	)	$	(1,453	)	$	17,001

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 $18.2 million in severance, asset write-downs and other restructuring charges during the nine months ended December 26, 2015. In addition, we also incurred $6.9 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.

We estimate we will incur approximately $40 million in restructuring and transformation costs, net of contingent consideration income, in fiscal 2016. 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 (Loss) Income and Comprehensive (Loss) Income for the periods presented.



Transformation costs	Three Months Ended					Nine Months Ended
(in thousands)	December 26, 2015			December 27, 2014		December 26, 2015		December 27, 2014
Transformation and other costs	$	(235	)	$	5,892	$	6,774	$	20,877
Accelerated depreciation	10			351		86		769
Asset disposal	18			471		18		471
Total	$	(207	)	$	6,714	$	6,878	$	22,117



Restructuring costs	Three Months Ended				Nine Months Ended
(in thousands)	December 26, 2015		December 27, 2014		December 26, 2015		December 27, 2014
Severance and other employee costs	$	1,181	$	2,887	$	9,141	$	15,633
Other costs	2,270		2,691		7,846		12,044
Accelerated depreciation	415		418		1,258		1,158
Asset disposal	—		199		4		295
Total	$	3,866	$	6,195	$	18,249	$	29,130

Total restructuring and transformation	$	3,659	$	12,909	$	25,127	$	51,247

As discussed in Note 8, Derivatives and Fair Value Measurements, during the three and nine months ended December 26, 2015, we reversed $4.9 million of contingent consideration associated with the SOLX asset, as we now do not expect to achieve the conditions that called for its payment. This reversal is reflected in transformation and other costs in the table above.