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Restructuring and Other Charges
 9 Months Ended
Oct. 02, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges RESTRUCTURING AND OTHER CHARGES
Restructuring, asset impairment and other charges by reportable segment are presented as follows:
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
AMS$— $(1)$— $(1)
EAAA(105)3,814 1,592 3,622 
Total restructuring, asset impairment and other charges$(105)$3,813 $1,592 $3,621 
A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated condensed balance sheets, for the 2021 and 2019 restructuring plans is presented below:
Workforce ReductionRetention BonusesAsset Impairment and Other Related Charges
2021 Plan2019 Plan2021 Plan2021 PlanTotal
(in thousands)
Balance, at January 2, 2022$2,257 $97 $— $— $2,354 
Charged to expenses1 — 348 1,243 1,592 
Deductions(1,369)(97)(71)— (1,537)
Charged to other accounts— — — (1,243)(1,243)
Balance, at October 2, 2022$889 $— $277 $— $1,166 
Below is a discussion of the restructuring plan activities under the 2021 and 2019 restructuring plans.
2021 Restructuring Plan
On September 8, 2021, the Company committed to a new restructuring plan that continues to focus on efforts to improve efficiencies and decrease costs across its worldwide operations. The plan involves a reduction of approximately 188 employees and the closure of the Company’s manufacturing facility in Thailand at the end of the first quarter of 2022.
Expected charges and cumulative charges incurred to date under the 2021 restructuring plan are as follows:
Workforce Reduction
Retention Bonuses(2)
Asset Impairment and Other Related ChargesTotal
(in thousands)
Estimated expected charges(1)
$2,300 $500 $3,700 $6,500 
Cumulative charges incurred to date(1)
2,258 348 2,893 5,499 
(1) Charges are attributable to the EAAA reportable segment.
(2) The retention bonuses will be recognized through the first quarter of 2023 as earned over the requisite service periods.
In addition, during the nine months ended October 2, 2022, in conjunction with the closure of its Thailand facility, the Company recorded a write-down of inventory of $2.5 million within cost of sales in the consolidated condensed statements of operations.
The restructuring plan is expected to result in cash expenditures of approximately $3 million to $4 million for payment of employee severance, employee retention bonuses and other costs to shut down the Thailand manufacturing facility, as described above. The Company expects to complete the restructuring plan in the first quarter of 2023 and expects the plan to yield annualized savings of approximately $1.7 million. A portion of the annualized savings is expected to be realized on the consolidated condensed statement of operations in fiscal year 2022, with the remaining portion of the annualized savings expected to be realized in fiscal year 2023.
2019 Restructuring Plan
The 2019 restructuring plan has been completed as of April 3, 2022.