Restructuring Costs

9 Months Ended

May 29, 2021

Note 9. Restructuring Costs

Enhanced Customer Support Model

In the second quarter of fiscal year 2021, the Company announced an enhanced customer support model, including a transition from the branch office network to virtual customer care hubs. Along with this transition, the Company closed 73 branch offices and realigned certain existing locations from branch offices to regional inventory centers. Restructuring costs for the thirteen- and thirty-nine-week periods ended May 29, 2021 consist of impairment charges for operating lease assets, associate severance and separation costs, and other exit-related costs.

Optimization of Company Operations

Beginning in fiscal year 2019, the Company identified opportunities for improvements in its workforce realignment, strategy, and staffing, and increased its focus on performance management, to ensure it has the right skillsets and number of associates to execute its long-term vision. Beginning in the second quarter of fiscal year 2020, the Company engaged consultants to assist in reviewing the optimization of the Company’s operations. As such, the Company extended voluntary and involuntary severance and separation benefits to certain associates in fiscal years 2019 through 2021 in order to facilitate its workforce realignment. This project is expected to continue through fiscal year 2021.

The following table summarizes restructuring costs for both projects listed above:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	May 29,		May 30,		May 29,		May 30,
	2021		2020		2021		2020
Operating lease asset impairment loss	$	—	$	—	$	17,411	$	—
Settlement of lease liabilities (gain)		(2,278)		—		(2,953)		—
Other exit-related costs		1,178		—		2,023		—
Consulting-related costs		2,000		1,333		5,790		3,465
Associate severance and separation costs		442		26		4,421		2,316
Equity acceleration costs associated with severance		7		—		251		90
Total restructuring costs	$	1,349	$	1,359	$	26,943	$	5,871

Liabilities associated with restructuring are included within Accrued expenses and other current liabilities on the unaudited Condensed Consolidated Balance Sheet as of May 29, 2021. The following table summarizes activity related to liabilities associated with restructuring:


	Consulting-Related Costs		Severance and Separation Costs		Total
Balance at August 29, 2020	$	4,063	$	6,927	$	10,990
Additions		5,790		4,421		10,211
Payments and other adjustments		(7,210)		(10,684)		(17,894)
Balance at May 29, 2021	$	2,643	$	664	$	3,307