Restructuring Activities

9 Months Ended

Oct. 05, 2024

Restructuring and Related Activities [Abstract]

3. RESTRUCTURING ACTIVITIES

In April 2024, the company announced a cost savings program to improve operational performance, which includes employee termination benefits associated with a reduction-in-force ("2024 RIF") and other expense optimization initiatives expected to be completed in Fiscal 2024. The company also incurred consulting costs associated with implementing the restructuring program.

In February 2023, to improve operational effectiveness, increase profitable sales, and better meet customer requirements, the company announced a restructuring of plant operation responsibilities from the sales function to the supply chain function. As part of that restructuring, we incurred costs for employee termination benefits and other cash charges, which were primarily related to the voluntary employee separation incentive plan (the "2023 VSIP"), reduction-in-force (the "2023 RIF"), and employee relocation costs. There were no additional costs incurred during Fiscal 2024 for the 2023 VSIP, 2023 RIF, and employee relocation costs.

The tables below present the components of costs associated with the restructuring programs detailed above (amounts in thousands):


	For the Twelve Weeks Ended		For the Forty Weeks Ended
	October 5, 2024		October 5, 2024
Restructuring charges:
2024 RIF (1)	$	—	$	7,403
Restructuring-related implementation costs (2)		—		2,979
Total restructuring charges	$	—	$	10,382


	For the Twelve Weeks Ended		For the Forty Weeks Ended
	October 7, 2023		October 7, 2023
Restructuring charges:
2023 VSIP	$	—	$	5,229
2023 RIF		—		899
Relocation costs		179		745
Total restructuring charges (1)	$	179	$	6,873

(1)

Presented on our Condensed Consolidated Statements of Income (Loss)

(2)

Costs are recorded in the selling, distribution and administrative expenses line item of our Condensed Consolidated Statements of Income (Loss).

The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands):


	2023 VSIP			2024 RIF			Total
Liability balance at December 30, 2023	$	1,429		$	—		$	1,429
Charges		—			7,403			7,403
Cash payments		(1,429	)		(7,317	)		(8,746	)
Liability balance at October 5, 2024	$	—		$	86		$	86