Restructuring Costs

12 Months Ended

Dec. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate gross margin initiatives. In addition to the costs incurred in 2023, the Company expects an additional $12 million of restructuring costs to be incurred in 2024, including product value engineering, service simplification, streamlining suppliers and re-prioritizing spend to accelerate near-term growth and efficiency. Charges incurred related to this initiative in 2023 were comprised of contract termination costs, severance and employee-related benefits, professional fees and other, and asset impairment charges and are included in the restructuring costs line in the Company’s consolidated statement of operations.

During the fourth quarter of fiscal 2023, the Company recognized $15.7 million of restructuring costs, as follows (in thousands):

	2023
Cash restructuring costs:
Contract termination costs (1)	$	7,410
Severance and employee-related benefits	4,966
Professional fees and other	1,110
Total cash restructuring costs	13,486
Non-cash restructuring costs:
Asset impairments (2)	2,242
Total restructuring costs	$	15,728

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(1)Primarily comprised of lease termination costs.

(2) Includes impairments of both lease right-of-use assets and property and equipment.

The following table provides the activity in the Company’s restructuring related liabilities, which are included within accounts payable, compensation and benefits and other current liabilities on the consolidated balance sheet (in thousands):

	2023
Balance at December 31, 2022	$	—
Expenses	13,486
Cash payments	(4,766)
Balance at December 30, 2023	$	8,720