Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ian Zaffino - Oppenheimer & Co.
Ian Zaffino - Oppenheimer & Co.
As far as the guidance, you're assuming gross margin expansion in your guidance. How much of that's related to actually revenue growth versus the levers that you could pull that you'd mentioned?
Greg Miller
I don't have the benefit of the slides that we had in our October 7th meeting, but I would tell you that the majority of our gross margin improvement - well, actually, it breaks down into our revenue growth, which is a big portion of that, as well as some of the initiatives that we have been talking about for the last year in regards to improved operations, which include not only continuous improvement in our current plants and low-cost region sourcing, but also this year in Mexico we should be able to see benefits from our Mexico plant where this past year it's been primarily providing some headwinds.
So if you were to refer back to that, it actually breaks it down by area for gross profit reconciliation.
Peter Soderberg
I'd just point out that we said all along the Monterey investments will go from a headwind to a tailwind, so that plant is now pretty vertically integrated. The supply base is being converted. Our plant in France has received the benefit of a significant investment in automation, so we are pretty much online with a mixed model assembly line that's highly automated, and we have a number of productivity initiatives.
So the very biggest improvement I would group as productivity.
The other thing I think you'll see, as we talked about this a lot, is mix. If you look at our guidance, the matching growth in North America in acute care, where we've consistently improved our margins with growth in International means the mix impact should moderate very significantly.
Ian Zaffino - Oppenheimer & Co.
Breaking down the $20.5 million pre-tax charge, what was it, $13.8 was non-cash related to MEMS and then the other $7.7 was cash related to 160 positions that you had looked to eliminate. Is that how to think about it?
Greg Miller
Well, you've got the general numbers right from a cash and non-cash perspective, but actually the streamlining was about $6 million of cash and about $1 million of that $7 million related to the MEMS, related to lease termination costs and some severance. So overall it's about a $7 million cash impact and a $14 million non-cash impact.
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