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Restructuring and Other Charges
 12 Months Ended
Jan. 01, 2023
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:

Fiscal Year
202220212020
(in thousands)
AMS$— $(1)$(288)
EAAA1,965 3,622 (4,338)
Total restructuring, asset impairment and other charges$1,965 $3,621 $(4,626)

A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated balance sheets, for the 2021, 2019 and 2018 restructuring plans is presented below:

Workforce ReductionRetention BonusesOther Exit CostsAsset Impairment and Other Related Charges
2021 Plan2019 Plan2018 Plan2021 Plan2019 Plan2018 Plan2021 PlanTotal
(in thousands)
Balance, at December 29, 2019$— $8,634 $1,898 $— $139 $774 $— $11,445 
Charged to expenses— (3,704)(223)— — (699)— (4,626)
Deductions— (3,866)(1,675)— (139)(75)— (5,755)
Balance, at January 3, 2021— 1,064 — — — — — 1,064 
Charged to expenses2,257 (286)— — — — 1,650 3,621 
Deductions— (681)— — — — — (681)
Charged to other accounts— — — — — — (1,650)(1,650)
Balance, at January 2, 20222,257 97 — — — — — 2,354 
Charged to expenses1 — — 493 — — 1,471 1,965 
Deductions(1,981)(97)— (314)— — — (2,392)
Charged to other accounts— — — — — — (1,471)(1,471)
Balance, at January 1, 2023$277 $— $— $179 $— $— $— $456 

Below is a discussion of the restructuring plan activities under the 2021, 2019 and 2018 restructuring plans.

2021 Restructuring Plan

On September 8, 2021, the Company committed to a 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 $3,200 $6,000 
Cumulative charges incurred to date(1)
2,258 493 3,121 5,872 

(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 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 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 was realized in the consolidated statements of operations in 2022, with the remaining portion of the annualized savings expected to be realized in 2023.

2019 Restructuring Plan

On December 23, 2019, the Company committed to a restructuring plan that continues to focus on efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involved a reduction of approximately 105 employees and early termination of two office leases. As a result of this plan, the Company recorded a pre-tax restructuring charge in the fourth quarter of 2019 of approximately $9.0 million (comprised of $1.1 million attributable to the AMS reportable segment and $7.9 million attributable to the EAAA reportable segment). The charge was comprised of severance expenses ($8.8 million) and lease exit costs ($0.2 million). The plan was expected to result in future cash expenditures of approximately $9.0 million for the payment of employee severance and lease exit costs.

In 2021 and 2020, the Company recorded reductions of $0.3 million and $3.7 million, respectively, of the previously recognized charges due to changes in expected cash payments for employee severance. The 2019 restructuring plan was completed as of the end of the first quarter of 2022. Cumulative charges under the 2019 restructuring plan, net of reductions of previously recognized charges, were $0.8 million within the AMS reportable segment and $4.2 million within the EAAA reportable segment. The Company expected the plan to yield annualized savings of approximately $6.0 million. A portion of the annualized savings was realized in the consolidated statements of operations in 2020, with the remaining portion of the annualized savings realized in 2021.
2018 Restructuring Plan

On December 29, 2018, the Company committed to a restructuring plan in its continuing efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involved (i) a restructuring of its sales and administrative operations in the United Kingdom, (ii) a reduction of approximately 200 employees, primarily in the Europe and Asia-Pacific geographic regions, and (iii) the write-down of certain underutilized and impaired assets that included information technology assets and obsolete manufacturing equipment.
 
As a result of this plan, the Company recorded a pre-tax restructuring and asset impairment charge in the fourth quarter of 2018 of approximately $20.5 million (comprised of $7.7 million attributable to the AMS reportable segment and $12.8 million attributable to the EAAA reportable segment). The charge was comprised of severance expenses (approximately $10.8 million), impairment of assets (approximately $8.6 million) and other items (approximately $1.1 million). The charge was expected to result in future cash expenditures of $12.0 million, primarily for severance payments (approximately $10.8 million).
In the third quarter of 2019, the Company recorded $0.7 million of restructuring charges related to additional lease exit costs in connection with the restructuring plan announced on December 29, 2018. In the fourth quarter of 2019, the Company adjusted its previously recorded severance expenses in connection with the 2018 restructuring plan and recognized a reduction in restructuring costs of $1.7 million in 2019. In 2020, the Company further adjusted its previously recorded severance expenses and other exit costs and recognized a reduction in restructuring costs of $0.9 million. The restructuring plan was completed as of January 3, 2021. Cumulative charges under the 2018 restructuring plan, net of reductions of previously recognized charges, were $6.4 million within the AMS reportable segment and $12.1 million within the EAAA reportable segment.