HAEMONETICS CORPORATION
This Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") should be read in conjunction with both our interim
condensed consolidated financial statements and notes thereto which appear
elsewhere in this Quarterly Report on Form 10-Q and our annual consolidated
financial statements, notes thereto and the MD&A contained in our Annual Report
on Form 10-K for the fiscal year ended April 3, 2021 . The following discussion
may contain forward-looking statements and should be read in conjunction with
the "Cautionary Statement Regarding Forward-Looking Information" in this
discussion.
Introduction
Haemonetics Corporation is a global healthcare company dedicated to providing a suite of innovative medical products and solutions for customers to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite and hospital transfusion services. When used in this report, the terms "we," "us," "our", "Haemonetics" and the "Company" meanHaemonetics Corporation . We view our operations and manage our business in three principal reporting segments: Plasma,Blood Center and Hospital. For that purpose, "Plasma" includes plasma collection devices and disposables, plasma donor management software, and anticoagulant and saline sold to plasma customers. "Blood Center " includes blood collection and processing devices and disposables for red cells, platelets and whole blood. "Hospital", which is comprised of Hemostasis Management, Cell Salvage, Transfusion Management and Vascular Closure products, includes devices and methodologies for measuring coagulation characteristics of blood, surgical blood salvage systems, specialized blood cell processing systems and disposables, blood transfusion management software and vascular closure devices.
We believe that Plasma and Hospital have growth potential, while
Recent Developments
Operational Excellence Program
During the second quarter of fiscal 2022, our Board of Directors approved the revised Operational Excellence Program (the "2020 Program"). The revised program is designed to improve product and service quality, reduce cost principally in our manufacturing and supply chain operations and ensure sustainability while helping to offset impacts from a previously announced customer loss, rising inflationary pressures and effects of the COVID-19 pandemic. We now expect to incur aggregate charges between$95 million and$105 million by the end of fiscal 2025 and to achieve total gross savings of$115 million to$125 million on an annualized basis once the program is completed. The majority of charges will result in cash outlays, including severance and other employee costs, and will be incurred as the specific actions required to execute these initiatives are identified and approved. During the three and nine months endedJanuary 1, 2022 , the Company incurred$5.7 million and$20.2 million , respectively, of restructuring and restructuring related costs under this program. During the three and 24 --------------------------------------------------------------------------------
nine months ended
CSL Contract Loss
InApril 2021 ,CSL Plasma, Ltd. informed Haemonetics of its intent not to renew its supply agreement for the use of PCS2 plasma collection system devices and the purchase of disposable plasmapheresis kits (the "Supply Agreement") following the expiration of the current term of the Supply Agreement inJune 2022 . In fiscal year 2021, revenue under this Supply Agreement was$88.6 million , or 10.2% of total revenue. As a result of this anticipated contract loss, we recorded a$20.9 million one-time asset impairment charge relating to disposables manufacturing equipment and$5.0 million of additional expenses in the fourth quarter of fiscal 2021. In the first quarter of fiscal 2022, we incurred an additional$2.8 million of accelerated depreciation expense relating to disposables manufacturing equipment that is no longer in use. During the third quarter of fiscal 2022, we amended the Supply Agreement to allow CSL to continue to use our PCS2 devices and purchase disposables throughDecember 2023 . The extension provides CSL the ability to utilize our devices and disposables in their collection centers on a non-exclusive basis, and we are working with them to quantify their volume requirements over the life of the agreement.
COVID-19
We continue to closely manage the impacts of the COVID-19 pandemic on our business, results of operations and financial condition. The progression of the COVID-19 pandemic during fiscal 2022 has significantly impacted our financial results. While the duration and additional implications remain uncertain, the full extent of the impact will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national and international markets.
Our priorities continue to be the safety of our employees and business continuity while continuing to invest in growth opportunities. Our manufacturing and supply chain remain operational without significant disruptions and we continue to operate in all of our markets.
Although the pace and timing of the recovery is uncertain, we remain confident in the long term strength of the end markets that we serve across our three business units. For additional information regarding the expected impacts to our business units and the various risks posed by the COVID-19 pandemic, refer to Results of Operations within the MD&A contained in this Quarterly Report on Form 10-Q and Risk Factors contained in Item 1A of the Annual Report on Form 10-K for the fiscal year endedApril 3, 2021 .
Financial Summary
Three Months Ended Nine Months Ended
(In thousands, except per share
% Increase/ January 1, December 26, % Increase/
data) 2022 2020 (Decrease) 2022 2020 (Decrease)
Net revenues $ 259,769 $ 240,371 8.1 % $ 728,194 $ 645,434 12.8 %
Gross profit $ 138,565 $ 120,257 15.2 % $ 369,191 $ 316,031 16.8 %
% of net revenues 53.3 % 50.0 % 50.7 % 49.0 %
Operating expenses $ 102,914 $ 79,832 28.9 % $ 307,640 $ 205,109 50.0 %
Operating income $ 35,651 $ 40,425 (11.8) % $ 61,551 $ 110,922 (44.5) %
% of net revenues 13.7 % 16.8 % 8.5 % 17.2 %
Interest and other expense, net
39.7 %$ (13,249) $ (10,612) 24.8 % Income before provision for income taxes$ 31,388 $ 37,374 (16.0) %$ 48,302 $ 100,310 (51.8) % Provision for income taxes$ 8,156 $ 5,492 48.5 %$ 14,668 $ 9,800 49.7 % % of pre-tax income 26.0 % 14.7 % 30.4 % 9.8 % Net income$ 23,232 $ 31,882 (27.1) %$ 33,634 $ 90,510 (62.8) % % of net revenues 8.9 % 13.3 % 4.6 % 14.0 %
Net income per share - basic
(28.6) %$ 0.66 $ 1.79 (63.1) % Net income per share - diluted$ 0.45 $ 0.62 (27.4) %$ 0.65 $ 1.77 (63.3) % 25
-------------------------------------------------------------------------------- Net revenues increased 8.1% and 12.8% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, net revenues increased 7.9% and 11.6% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Revenue increases in Hospital, primarily Vascular Closure, drove the overall increase in revenue during the three and nine months endedJanuary 1, 2022 . Operating income decreased 11.8% and 44.5% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same period of fiscal 2021, primarily due to increased spend related to the acquisition ofCardiva Medical, Inc. ("Cardiva"), including higher transaction and integration costs as well as increased intangible amortization expense, an increase in the fair value of contingent consideration and increased freight costs. During the nine months endedJanuary 1, 2022 , costs driven by the amortization of the fair value inventory step-up related to Cardiva, asset impairments and gains on divestitures during the prior period also contributed to the decrease. The decrease during the three and nine months endedJanuary 1, 2022 , was partially offset by favorable volumes and product mix and productivity savings from the 2020 Program.
Management's Use of Non-GAAP Measures
Management uses non-GAAP financial measures, in addition to financial measures in accordance with accounting principles generally accepted inthe United States of America ("U.S. GAAP"), to monitor the financial performance of the business, make informed business decisions, establish budgets and forecast future results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance withU.S. GAAP. Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant currency conversion rate. We have provided this non-GAAP financial measure because we believe it provides meaningful information regarding our results on a consistent and comparable basis for the periods presented. RESULTS OF OPERATIONSNet Revenues by Geography Three Months Ended January 1, December 26, Constant currency (In thousands) 2022 2020 Reported growth Currency impact growth (1) United States$ 167,270 $ 147,607 13.3 % - % 13.3 % International 92,499 92,764 (0.3) % 0.6 % (0.9) % Net revenues$ 259,769 $ 240,371 8.1 % 0.2 % 7.9 % (1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant currency. See "Management's Use of Non-GAAP Measures." Nine Months Ended January 1, December 26, Constant currency (In thousands) 2022 2020 Reported growth Currency impact growth (1) United States$ 460,404 $ 382,600 20.3 % - % 20.3 % International 267,790 262,834 1.9 % 3.0 % (1.1) % Net revenues$ 728,194 $ 645,434 12.8 % 1.2 % 11.6 % (1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant currency. See "Management's Use of Non-GAAP Measures." Our principal operations are in theU.S ,Europe ,Japan and other parts ofAsia . Our products are marketed in approximately 90 countries around the world through a combination of our direct sales force, independent distributors and agents. During the three and nine months endedJanuary 1, 2022 our revenue generated outside theU.S. was 35.6% and 36.8%, respectively, of total net revenues, as compared with 38.6% and 40.7% during the three and nine months endedDecember 26, 2020 , respectively. International sales are generally conducted in local currencies, primarily Japanese Yen, Euro, Chinese Yuan and Australian Dollars. Our results of operations are impacted by changes in foreign exchange rates, particularly in the value of the Yen, Euro and Australian Dollar relative to theU.S. Dollar. We have placed foreign currency hedges to mitigate our exposure to foreign currency fluctuations. 26 --------------------------------------------------------------------------------
Please see the section entitled "Foreign Exchange" in this discussion for a more complete explanation of how foreign currency affects our business and our strategy for managing this exposure.
Net Revenues by Business Unit
Three Months Ended
January 1, December 26, Constant currency
(In thousands) 2022 2020 Reported growth Currency impact growth (1)
Plasma $ 96,460 $ 101,934 (5.4) % (0.1) % (5.3) %
Blood Center 75,692 80,920 (6.5) % 0.8 % (7.3) %
Hospital (2) 82,273 52,651 56.3 % (0.6) % 56.9 %
Service 5,344 4,866 9.8 % 0.5 % 9.3 %
Net revenues $ 259,769 $ 240,371 8.1 % 0.2 % 7.9 %
(1) Constant currency growth, a non-GAAP financial measure, measures the change
in revenue between the current and prior year periods using a constant currency.
See "Management's Use of Non-GAAP Measures."
(2) Hospital revenue includes Hemostasis Management revenue of $33.5 million and
$28.5 million during the three months ended January 1, 2022 and December 26,
2020 , respectively. Hemostasis Management revenue increased 17.5% in the third
quarter of fiscal 2022, as compared with the same period of fiscal 2021. Without
the effect of foreign exchange, Hemostasis Management revenue increased 18.4% in
the third quarter of fiscal 2022, as compared with the same period of fiscal
2021. Hospital revenue also includes Vascular Closure revenue of $24.3 million
for the three months ended January 1, 2022 .
Nine Months Ended
January 1, December 26, Constant currency
(In thousands) 2022 2020 Reported growth Currency impact growth (1)
Plasma $ 250,244 $ 248,553 0.7 % 0.3 % 0.4 %
Blood Center 225,379 233,622 (3.5) % 2.0 % (5.5) %
Hospital (2) 237,074 148,468 59.7 % 1.5 % 58.2 %
Service 15,497 14,791 4.8 % 3.1 % 1.7 %
Net revenues $ 728,194 $ 645,434 12.8 % 1.2 % 11.6 %
(1) Constant currency growth, a non-GAAP financial measure, measures the change
in revenue between the current and prior year periods using a constant currency.
See "Management's Use of Non-GAAP Measures."
(2) Hospital revenue includes Hemostasis Management revenue of $97.2 million and
$78.5 million during the nine months ended January 1, 2022 and December 26,
2020 , respectively. Hemostasis Management revenue increased 23.8% in the first
nine months of fiscal 2022, as compared with the same period of fiscal 2021.
Without the effect of foreign exchange, Hemostasis Management revenue increased
23.2% in the first nine months of fiscal 2022, as compared with the same period
of fiscal 2021. Hospital revenue also includes Vascular Closure revenue of $66.8
million for the nine months ended January 1, 2022 .
Plasma
Plasma revenue decreased 5.4% and increased 0.7% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, Plasma revenue decreased 5.3% and increased 0.4% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. The decrease during the three months endedJanuary 1, 2022 , as compared with the same period of fiscal 2021 was primarily driven by a decline in plasma liquid solutions and a large stocking order in the prior period. The increase during the nine months endedJanuary 1, 2022 was primarily driven by increase in volume of plasma disposables and increase in software revenue, partially offset by pricing adjustments and declines in plasma liquid solutions as a result of certain strategic exits within our liquid solutions business. Although we continue to experience the negative impact of COVID-19 on our business, we believe the impacts on plasma collection are temporary and anticipate volumes to recover to pre-pandemic levels. However, the exact timing of the recovery remains uncertain and is expected to occur after the end of fiscal 2022. We remain confident in the strength of the plasma end market growth as the long-term global demand for plasma-derived pharmaceuticals is expected to continue. In earlyApril 2021 ,CSL Plasma, Ltd. informed us of its intent not to renew its supply agreement for the use of PCS2 plasma collection system devices and the purchase of disposable plasmapheresis kits following the expiration of the current term of the Supply Agreement inJune 2022 . In fiscal 2021, revenue under this Supply Agreement was$88.6 million . During the third quarter of fiscal 2022, we amended the Supply Agreement to allow CSL to continue to use our PCS2 devices and purchase disposables throughDecember 2023 . The extension provides CSL the ability to utilize our devices and disposables in their collection centers on a non-exclusive basis, and we are working with them to quantify their volume requirements over the life of the agreement. 27 --------------------------------------------------------------------------------
Blood Center revenue decreased 6.5% and 3.5% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange,Blood Center revenue decreased 7.3% and 5.5% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. The decrease during the three and nine months endedJanuary 1, 2022 as compared with the same periods of fiscal 2021 was primarily driven by continued declines in whole blood disposables and the impact of previously discontinued customer contracts inNorth America as well as an apheresis stocking order in the prior year period. The divestiture of certain blood donor management software solution assets in fiscal 2021 also contributed to the decline during the nine months endedJanuary 1, 2022 , as compared with the same period of fiscal 2021. We have not yet experienced the reversal of the large stocking orders made by distributors and blood collectors during the first quarter of fiscal 2021 in response to the COVID-19 pandemic. The timing and magnitude of potential reversals in the future periods is likely to occur over an extended period of time as customers' risk aversion returns to normal along with safety stock levels.
Hospital
Hospital revenue increased 56.3% and 59.7% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, Hospital revenue increased 56.9% and 58.2% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. The increase during the three and nine months endedJanuary 1, 2022 was primarily attributable to Vascular Closure revenue resulting from the acquisition of Cardiva and an increase in TEG disposables revenue in theU.S. The increase during the nine months endedJanuary 1, 2022 also reflected the impact of the COVID-19 pandemic on the prior year period, partially offset by the divestiture of certain blood bank and hospital software solution assets during the same period of fiscal 2021. We believe that the demand for our hospital products is inherently strong and that procedure volumes will continue to improve with a return to normal levels. Gross Profit Three Months Ended Nine Months Ended January 1, December 26, January 1, December 26, (In thousands) 2022 2020 % Increase 2022 2020 % Increase Gross profit$ 138,565 $ 120,257 15.2 %$ 369,191 $ 316,031 16.8 % % of net revenues 53.3 % 50.0 % 50.7 % 49.0 % Gross profit increased 15.2% and 16.8% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, gross profit increased 14.4% and 14.3% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. The increase during the three and nine months endedJanuary 1, 2022 was primarily driven by the addition of Vascular Closure, favorable volumes and product mix, lower expenses related to the COVID-19 pandemic, currency translation, and productivity savings from the 2020 Program. The increase was partially offset by recent divestitures in fiscal 2021 and inflationary pressures and higher freight costs in our global supply chain. The increase during the nine months endedJanuary 1, 2022 was also partially offset by pricing adjustments, the amortization of the fair value inventory step-up related to the acquisition of Cardiva and asset impairments. 28 --------------------------------------------------------------------------------
Operating Expenses
Three Months Ended Nine Months Ended
January 1, December 26, January 1, December 26, % Increase/
(In thousands) 2022 2020 % Increase 2022 2020 (Decrease)
Research and development $ 10,037 $ 7,501 33.8 % $ 33,591 $ 22,014 52.6 %
% of net revenues 3.9 % 3.1 % 4.6 % 3.4 %
Selling, general and administrative
23.0 %$ 247,722 $ 191,504 29.4 % % of net revenues 31.1 % 27.3 % 34.0 % 29.7 %
Amortization of intangible assets
55.7 %$ 35,930 $ 24,204 48.4 % % of net revenues 4.7 % 3.2 % 4.9 % 3.8 % Gains on divestitures and sale of assets $ -$ (1,115) n/m$ (9,603) $ (32,613) (70.6) % % of net revenues - % (0.5) % (1.3) % (5.1) % Total operating expenses$ 102,914 $ 79,832 28.9 %$ 307,640 $ 205,109 50.0 % % of net revenues 39.6 % 33.2 % 42.2 % 31.8 % Research and Development Research and development expenses increased 33.8% and 52.6% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, research and development expenses increased 33.4% and 51.5% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. These increases were primarily due to increased spend related to investments in our Hospital Business unit, primarily driven by Vascular Closure, as well as costs related to compliance with the European Union Medical Device Regulation ("MDR") and In Vitro Diagnostic Regulation ("IVDR") requirements. The increase during the three and nine months endedJanuary 1, 2022 , was partially offset by cost savings related to the 2020 Program.
Selling, General and Administrative
Selling, general and administrative expenses increased 23.0% and 29.4% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effect of foreign exchange, selling, general, and administrative expenses increased 23.1% and 27.9% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same period of fiscal 2021. The increase during three and nine months endedJanuary 1, 2022 was primarily due to spend related to the acquisition of Cardiva, including the increase in the fair value of contingent consideration. Higher freight costs also contributed to these increases, which were partially offset by cost savings related to the 2020 Program.
Amortization of Intangible Assets
We recognized amortization expense of$12.2 million and$35.9 million during the three and nine months endedJanuary 1, 2022 , respectively and$7.8 million and$24.2 million during the three and nine months endedDecember 26, 2020 , respectively. The increase was primarily driven by an increase in intangible assets resulting from recent acquisitions. 29 --------------------------------------------------------------------------------
Gains on Divestitures
We recognized gains on divestitures of
Interest and Other Expense, Net
Interest and other expenses increased 39.7% and 24.8% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. Without the effects of foreign exchange, interest and other expenses increased 40.6% and 24.0% during the three and nine months endedJanuary 1, 2022 , respectively, as compared with the same periods of fiscal 2021. The increase during the three and nine months endedJanuary 1, 2022 was primarily driven by realized losses due to foreign currency and the amortization of deferred financing fees associated with ourMarch 2021 issuance of$500 million in aggregate principal amount of 0% convertible senior notes, partially offset by a reduction in interest expense from borrowings under our$350.0 million term loan and$350.0 million revolving loan due to lower borrowings. The effective interest rate on our term loan and revolving loan as ofJanuary 1, 2022 was 1.9%. Income Taxes We conduct business globally and report our results of operations in a number of foreign jurisdictions in addition tothe United States . Our reported tax rate is impacted by the jurisdictional mix of earnings in any given period as the foreign jurisdictions in which we operate have tax rates that differ from theU.S. statutory tax rate. For the three and nine months endedJanuary 1, 2022 , we reported income tax expense of$8.2 million and$14.7 million , respectively, representing effective tax rates of 26.0% and 30.4%, respectively. The effective tax rate for the nine months endedJanuary 1, 2022 includes discrete tax expense relating to stock compensation shortfalls of$0.9 million , with no discrete tax expense relating to stock compensation shortfalls recorded in the three months endedJanuary 1, 2022 . For the three and nine months endedDecember 26, 2020 , we reported income tax expense of$5.5 million and$9.8 million , respectively, representing effective tax rates of 14.7% and 9.8%, respectively. The effective tax rates for the three and nine months endedDecember 26, 2020 include discrete tax benefits recognized from excess stock compensation deductions of$1.0 million and$5.1 million , respectively. The effective tax rates were also impacted by the jurisdictional mix of earnings including divestiture transactions. During the three and nine months endedDecember 26, 2020 , the Company sold its Fajardo,Puerto Rico manufacturing operations, certainU.S. blood donor management software solution assets, and its wholly-owned subsidiary Inlog Holdings France SAS. The tax expense on divestitures, including the associated valuation allowance impacts, were included in the computation of the annual effective tax rate.
Liquidity and Capital Resources
The following table contains certain key performance indicators we believe depict our liquidity and cash flow position:
January 1, April 3,
(Dollars in thousands) 2022 2021
Cash & cash equivalents $ 236,877 $ 192,305
Working capital $ 374,044 $ 440,051
Current ratio 2.1 2.7
Net debt(1) $ (540,305) $ (515,303)
Days sales outstanding (DSO) 54 51
Inventory turnover 1.3 1.2
(1)Net debt position is the sum of cash and cash equivalents less total debt.
Our primary sources of liquidity are cash and cash equivalents, internally generated cash flow from operations, our revolving credit line that expires in the first quarter of fiscal 2024 and proceeds from employee stock option exercises. We believe these sources are sufficient to fund our cash requirements over at least the next twelve months. Our expected cash outlays relate primarily to acquisitions, investments, capital expenditures, including the build out of our new manufacturing facility inClinton, PA , cash payments under our credit agreement and restructuring initiatives. 30 -------------------------------------------------------------------------------- InMarch 2021 , the Company issued$500.0 million aggregate principal amount of 0% convertible senior notes due 2026, or the 2026 Notes. The 2026 Notes are governed by the terms of the Indenture between the Company andU.S. Bank National Association , as trustee. The total net proceeds from the sale of the 2026 Notes, after deducting the initial purchasers' discounts and debt issuance costs, were approximately$486.7 million . The 2026 Notes will mature onMarch 1, 2026 , unless earlier converted, redeemed or repurchased. The 2026 Notes have an effective interest rate of 0.5% as ofJanuary 1, 2022 . As ofJanuary 1, 2022 , we had$236.9 million in cash and cash equivalents, the majority of which is held in theU.S. or in countries from which it can be repatriated to theU.S. OnJune 15, 2018 , we entered into a five-year credit agreement which provided for a$350.0 million term loan and a$350.0 million revolving loan (together with the term loan, as amended from time to time, the "Credit Facilities"). Interest on the term loan and revolving loan is established using LIBOR plus 1.13% - 1.75%, depending on our leverage ratio. Under the Credit Facilities, we are required to maintain certain leverage and interest coverage ratios specified in the credit agreement as well as other customary non-financial affirmative and negative covenants. The Company and its lenders agreed to increase the maximum consolidated leverage ratio the Company is required to maintain for the four consecutive quarters immediately following the closing of the Cardiva acquisition to 4.25:1.0, after which the maximum consolidated leverage ratio the Company is required to maintain will revert to 3.5:1.0. As ofJanuary 1, 2022 ,$288.8 million was outstanding under the term loan with an effective interest rate of 1.9%. There were no borrowings outstanding on the revolving loan. We also had$24.7 million of uncommitted operating lines of credit to fund our global operations under which there were no outstanding borrowings as ofJanuary 1, 2022 .
The Company has scheduled principal payments of
During the second quarter of fiscal 2022, our Board of Directors approved a revised 2020 Program. We now estimate that we will incur aggregate charges between$95 million and$105 million in connection with the 2020 Program. These charges, the majority of which will result in cash outlays, including severance and other employee costs, will be incurred as the specific actions required to execute these initiatives are identified and approved and are expected to be substantially completed by the end of fiscal 2025. During the three and nine months endedJanuary 1, 2022 , we incurred$5.7 million and$20.2 million , respectively, of restructuring and restructuring related costs under this program.
© Edgar Online, source
