Restructuring and Impairment Charges

9 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

Restructuring and impairment charges incurred in fiscal 2021 in the Company's EMEA and AMER segments primarily relate to the reductions-in-force. For fiscal 2020, restructuring and impairment charges incurred in the AMER segment primarily relate to the closure of the Boulder Design Center. These charges are recorded within restructuring and impairment charges on the Condensed Consolidated Statements of Comprehensive Income. Restructuring liabilities are recorded within other accrued liabilities on the Condensed Consolidated Balance Sheets.

For the three months ended July 3, 2021, the Company incurred restructuring charges of $1.2 million, which consisted of severance from the reduction of the Company's workforce primarily in the AMER region. For the nine months ended July 3, 2021, the Company incurred restructuring charges of $3.3 million, which consisted of severance from the reduction of the Company's workforce primarily in the AMER and EMEA regions.

For the three months ended July 4, 2020, no restructuring and impairment charges were incurred. For the nine months ended July 4, 2020, the Company incurred restructuring and impairment charges of $6.0 million, which consisted of the following:

•$3.1 million of fixed asset and operating right-of-use asset impairment at the Company's Boulder Design Center; and

•$2.9 million of severance from the reduction of the Company's workforce primarily at the Boulder Design Center in fiscal 2020.

The Company recognized a tax benefit of $0.1 million and $0.3 million related to restructuring charges in the three and nine months ended July 3, 2021, respectively, and $0.6 million related to restructuring charges in the nine months ended July 4, 2020.

The Company's restructuring accrual activity for the three and nine months ended July 3, 2021 and July 4, 2020 is included in the table below (in thousands):


	Fixed Asset and Operating Right-of-Use Asset Impairment		Employee Termination and Severance Costs		Total
Accrual balance, January 2, 2021	$	—	$	22	$	22
Restructuring and Impairment Charges	—		2,029		2,029
Amounts utilized	—		(440)		(440)
Accrual balance, April 3, 2021	$	—	$	1,611	$	1,611
Restructuring and Impairment Charges	—		1,238		1,238
Amounts utilized	—		(1,997)		(1,997)
Accrual balance, July 3, 2021	$	—	$	852	$	852


	Fixed Asset and Operating Right-of-Use Asset Impairment		Employee Termination and Severance Costs		Total
Accrual balance, January 4, 2020	$	—	$	447	$	447
Restructuring and Impairment Charges	3,054		2,949		6,003
Amounts utilized	(3,054)		(2,049)		(5,103)
Accrual balance, April 4, 2020	$	—	$	1,347	$	1,347
Restructuring and Impairment Charges	—		—		—
Amounts utilized	—		(1,089)		(1,089)
Accrual balance, July 4, 2020	$	—	$	258	$	258

There was no material restructuring activity for the three months ended January 2, 2021 or January 4, 2020.

The restructuring accrual balance for the three months ended July 3, 2021 is expected to be utilized by the end of the fourth quarter of fiscal 2021.