Restructuring Costs

3 Months Ended

Aug. 30, 2020

Restructuring and Related Activities [Abstract]

During fiscal year 2020, the Company announced a restructuring plan to drive enhanced profitability, focus the business on its strategic assets and redesign the organization to be the appropriate size to compete and thrive. This includes a reduction-in-force, a reduction in leased office spaces, and the sale of non-strategic assets.

In the first quarter of fiscal year 2021, the Company sold its interest in Ontario. The Company received net cash proceeds of $4.9 million in connection with the sale, and recorded a gain of $2.8 million which is included in Restructuring costs within the Consolidated Statements of Comprehensive (Loss) Income. See the Assets Held for Sale section within Note 1 for additional information.

In the first quarter of fiscal year 2021, the Company recognized a $8.8 million impairment loss related to its Hanover building and related assets thereto, which is included in Restructuring costs within the Consolidated Statements of Comprehensive (Loss) Income. See the Assets Held for Sale section within Note 1 for additional information.

In August 2020, the Company closed its leased Santa Clara, California office and entered into a sublease agreement. In the fourth quarter of fiscal year 2020 the Company closed its leased Los Angeles, California office and plans to sublease the office.

The following table summarizes the restructuring costs recognized in the Company’s Consolidated Statements of (Loss) Income, by Business Segment:


(in thousands)	Curation Foods		Lifecore		Other		Total
Three Months Ended August 30, 2020
Asset write-off costs, net	$	6,005	$	—	$	—	$	6,005
Employee severance and benefit costs	905		—		—		905
Lease costs	—		—		—		—
Other restructuring costs	847		—		647		1,494
Total restructuring costs	$	7,757	$	—	$	647	$	8,404

The following table summarizes the restructuring costs recognized in the Company’s Consolidated Statements of (Loss) Income, by Business Segment, since inception of the restructuring plan in fiscal year 2020 through the three months ended August 30, 2020:


	Curation Foods		Lifecore		Other		Total
(in thousands)
Asset write-off costs, net	$	18,667	$	—	$	418	$	19,085
Employee severance and benefit costs	2,373		—		784		3,157
Lease costs	392		—		26		418
Other restructuring costs	1,871		—		1,158		3,029
Total restructuring costs	$	23,303	$	—	$	2,386	$	25,689

The total expected cost related to the restructuring plan is approximately $27.0 million.