Restructuring

9 Months Ended

Aug. 23, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

RESTRUCTURING

In April 2020, the Board endorsed a restructuring initiative designed to reduce costs, streamline operations and support agility. On July 7, 2020, the Company announced and began to implement the restructuring initiative, which the Company expects to substantially complete by the middle of fiscal year 2021. The adverse impacts of the COVID-19 pandemic on the Company's business necessitated cost reduction actions while plans to streamline operations continue to be developed.

The initiative includes the elimination of approximately 15% of the Company's global non-retail and non-manufacturing positions and is expected to result in approximately $100 million in annual cost savings.

For the three and nine months ended August 23, 2020, the Company recognized restructuring charges of $1.1 million and $68.4 million, respectively, which were recorded on a separate line item in the Company's consolidated statements of operations. The charges primarily relate to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans. The Company estimates that it will incur future additional charges related to this restructuring initiative.

The following tables summarize the activities associated with restructuring liabilities for the three and nine months ended

August 23, 2020. In the tables below, "Charges" represents the initial charge related to the restructuring activity, "Payments" consists of cash payments for severance and employee-related benefits, and "Foreign Currency Fluctuations and Other Adjustments" includes foreign currency fluctuations as well as revisions of estimates related to severance and employee-related benefits. As of August 23, 2020, $58.0 million and $3.5 million were classified as restructuring liabilities and other long-term liabilities, respectively, within the Company's consolidated balance sheet.

	Three Months Ended August 23, 2020
	Liabilities(1)		Charges		Payments		Foreign Currency Fluctuations and Other Adjustments		Liabilities(1)
	May 24, 2020								August 23, 2020
	(Dollars in thousands)
Severance and employee-related benefits	$	65,878	$	550	$	(5,138)	$	182	$	61,472

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(1)    Excludes $1.6 million and $2.1 million, respectively, of pension and postretirement curtailment losses recorded in AOCI as of May 24, 2020 and August 23, 2020.

	Nine Months Ended August 23, 2020
	Liabilities		Charges		Payments		Foreign Currency Fluctuations and Other Adjustments		Liabilities(1)
	November 24, 2019								August 23, 2020
	(Dollars in thousands)
Severance and employee-related benefits	$	—	$	66,428	$	(5,138)	$	182	$	61,472

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(1)    Excludes $2.1 million of pension and postretirement curtailment losses recorded in AOCI as of August 23, 2020.