Restructuring, Integration, and Other

6 Months Ended

Jun. 29, 2024

Restructuring, Integration, and Other

Restructuring, Integration, and Other

Note I – Restructuring, Integration, and Other

Restructuring initiatives and integration costs are due to the company's continued efforts to lower costs, drive operational efficiency, integrate acquired businesses, and the consolidation of certain operations, as necessary.

The following table presents the components of the restructuring, integration, and other:

	Quarter Ended				Six Months Ended
	June 29,		July 1,		June 29,		July 1,
(thousands)	2024		2023		2024		2023
Restructuring and integration charges	$	464	$	7,200	$	100	$	8,341
Other charges		40,073		3,133		87,293		4,552
	$	40,537	$	10,333	$	87,393	$	12,893

Other Charges

The following were included in other charges:

● charges of $22.8 million and $60.5 million for the second quarter and the first six months of 2024, respectively, related to the termination of personnel as a part of operating expense reduction initiatives not related to exit or disposal activities. As of June 29, 2024, the accrued liabilities related to the operating expense reduction initiatives totaled $39.7 million and substantially all accrued amounts are expected to be spent in cash within one year;

● consulting costs of $9.1 million and $14.1 million for the second quarter and the first six months of 2024, respectively, related to ongoing cost reduction initiatives; and

● charges of $3.2 million and $6.5 million related to early lease terminations and related asset impairments.

The company is continuing to evaluate and seek out opportunities to lower costs in order to improve profitability and reallocate resources to strategic investments. During the six months ended June 29, 2024, the company incurred $87.3 million in costs related to cost reduction initiatives and is likely to incur material costs related to these initiatives in the near term. The company cannot presently estimate the amount of these costs due to the variety of factors involved and the early stages of related projects.