Restructuring and Related Activities

9 Months Ended

Sep. 28, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities

Note 5 – Restructuring and Related Activities

On July 29, 2019, the Company announced global cost reduction and management rejuvenation programs as part of its continuous efforts to improve efficiency and operating performance.

The programs are primarily designed to reduce manufacturing fixed costs and selling, general, and administrative costs company-wide, and provide management rejuvenation.  The Company expects to incur charges of approximately $25,000, primarily related to cash severance costs, to implement these programs.  The Company expects these cost reductions to be fully achieved by December 2020.

The Company incurred $7,255 of restructuring expenses, primarily severance costs, during the fiscal quarter and nine fiscal months ended September 28, 2019.  Cash paid for these programs was immaterial during the fiscal quarter and nine fiscal months ended September 28, 2019.  Severance benefits are generally paid in a lump sum at cessation of employment.  The current portion of the liability is $3,635 and is included in other accrued expenses in the accompanying consolidated condensed balance sheet.  The non-current portion of the liability is $3,597 and is included in other liabilities in the accompanying consolidated condensed balance sheet.