Restructuring |
6 Months Ended |
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Mar. 29, 2025 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure | (8) Restructuring During the second quarter of fiscal 2025, the Company made various decisions to reorganize certain departments and reduce costs resulting in the termination of 50 employees in the Breast Health and Surgical divisions and Corporate functions in the U.S. across multiple departments. Charges of $5.0 million were recorded for severance and benefits during the second quarter of fiscal 2025 pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420) and ASC 712, Compensation-Nonretirement Postemployment Benefits (ASC 712) depending on the employee. These actions were completed as of March 29, 2025. During the first quarter of fiscal 2024, the Company further refined its strategy for the Mobidiag business, which is within the Diagnostics reportable segment. The strategy change included the decision to discontinue the manufacture and sale of certain products, closure of its facilities in Finland and France, and to transfer the development activities and operations to the Company’s San Diego, California location. As such, the Company determined certain fixed assets lives should be shortened and that lease assets were impaired at the affected facilities and recorded accelerated depreciation of $7.2 million and a lease asset impairment charge of $12.5 million. In connection with this plan, the Company finalized its decision to terminate the employees at these locations, totaling 190. The Company initiated discussions with the respective Works Councils at the end of the first quarter of fiscal 2024. In addition, the Company recorded the minimum statutory severance benefit for the employees located in France of $1.8 million pursuant to ASC 712 at that time. During the second quarter of fiscal 2024, the Company finalized its negotiations with the respective Works Councils and communicated the termination and related severance benefits to the affected employees. The Company has estimated the total severance charges, including accelerated stock compensation, will be approximately $15.7 million. The majority of the severance benefits are being recorded pursuant to ASC 420, which requires the severance benefits to be recognized ratably over the service period to obtain such benefits. The employees are ceasing employment in phases. During the three and six months ended March 29, 2025, the Company recorded severance charges of $0.7 million and $2.4 million, respectively, and for the year ended September 28, 2024, the Company recorded total severance charges of $11.9 million. This action is expected to be completed in the second half of fiscal 2025. During the first quarter of fiscal 2022, the Company finalized its decision to close its Danbury, Connecticut facility where it manufactured its Breast Health capital equipment products. The manufacturing of the Breast Health capital equipment products and all other support services were transferred to the Company’s Newark, Delaware facility. The transition of manufacturing was completed in the first quarter of fiscal 2025. In addition, research and development, sales and services support and administrative functions were transferred to the Newark, Delaware and Marlborough, Massachusetts facilities. The employees were notified of the closure during the first quarter of fiscal 2022, and the majority of employees located in Danbury were given the option to relocate to the new locations. The Company terminated approximately 117 employees and recorded severance benefits ratably over the required service period pursuant to ASC 420. During the three and six months ended March 29, 2025 the Company recorded severance and benefits charges of $0.3 million and $1.4 million , respectively, and $1.3 million and $1.8 million during the three and six months ended March 30, 2024, respectively. The Company estimates that total severance charges, including retention, relocation and outplacement costs, will be approximately $9.0 million. In addition, the Company recorded $1.1 million of site closure costs during the second quarter of fiscal 2025.
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