Restructuring and Other Costs

9 Months Ended

May 28, 2022

Restructuring and Other Costs [Abstract]

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Note 8. Restructuring and Other Costs

Optimization of Company Operations and Profitability Improvement

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. As such, the Company extended voluntary and involuntary severance and separation benefits to certain associates in order to facilitate its workforce realignment. In addition, the Company engaged consultants to assist in reviewing the optimization of the Company’s operations and improving profitability with executing on its Company-wide initiative, referred to as Mission Critical, through fiscal year 2023.

Enhanced Customer Support Model

In 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 and other costs consist of impairment charges for operating lease assets, net of gains related to settlement of lease liabilities, associate severance and separation costs, and other exit-related costs.

The following table summarizes restructuring and other costs:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	May 28,		May 29,		May 28,		May 29,
	2022		2021		2022		2021
Operating lease asset impairment loss	$	—	$	—	$	—	$	17,411
Settlement of lease liabilities (gain)		—		(2,278)		—		(2,953)
Consulting-related costs		3,150		2,000		5,670		5,790
Associate severance and separation costs		117		442		4,149		4,421
Equity award acceleration costs associated with severance		—		7		1,729		251
Other exit-related costs		—		1,178		136		2,023
Total restructuring and other costs	$	3,267	$	1,349	$	11,684	$	26,943

Liabilities associated with restructuring and other costs are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of May 28, 2022. The following table summarizes activity related to liabilities associated with restructuring and other costs:


	Consulting-related costs		Severance and separation costs		Other exit-related costs		Total
Balance at August 28, 2021	$	3,328	$	367	$	441	$	4,136
Additions		5,670		4,149		136		9,955
Payments and other adjustments		(8,158)		(3,530)		(577)		(12,265)
Balance at May 28, 2022	$	840	$	986	$	—	$	1,826