Restructuring and Impairment Charges

9 Months Ended

Jul. 02, 2022

Restructuring and Related Activities [Abstract]

Restructuring and impairment 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 2, 2022, the Company did not incur any restructuring and impairment charges. For the nine months ended July 2, 2022, the Company recorded $2.0 million of restructuring and charges primarily due to employee severance costs associated with a facility transition in the Company's APAC segment.

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

The Company recognized a tax benefit of $0.2 million related to restructuring and impairment charges for the nine months ended July 2, 2022 and $0.1 million and $0.3 million related to restructuring charges in the three and nine months ended July 3, 2021, respectively.

The Company's restructuring accrual activity for the three and nine months ended July 2, 2022 and nine months ended July 3, 2021 is included in the table below (in thousands):


	Fixed Asset and Operating ROU Asset Impairment		Employee Termination and Severance Costs		Total
Accrual balance, as of October 2, 2021	$	—	$	71	$	71
Restructuring and impairment costs	255		1,766		2,021
Amounts utilized	(255)		(75)		(330)
Accrual balance, as of January 1, 2022	$	—	$	1,762	$	1,762
Restructuring and impairment costs	—		—		—
Amounts utilized	—		(100)		(100)
Accrual balance, as of April 2, 2022	$	—	$	1,662	$	1,662
Restructuring and impairment costs	—		—		—
Amounts utilized	—		(181)		(181)
Accrual balance, as of July 2, 2022	$	—	$	1,481	$	1,481


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

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