Restructuring Activities

3 Months Ended

Feb. 26, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

In the fourth quarter of 2022, the Company began a restructuring initiative designed to reduce costs and streamline operations in support of enterprise prioritization efforts. The plan is expected to continue through 2023 and will include further prioritization, cost reductions, and organizational changes.

For the three-month period ended February 26, 2023, the Company recognized net restructuring charges of $11.4 million, which primarily relate to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans. The Company also recognized $18.2 million in charges related to the impairment of capitalized internal-use software, as a result of the decision to discontinue certain technology projects. Both charges were recorded in SG&A in the accompanying consolidated statements of income.

For the three-month period ended February 27, 2022, the Company recognized a net reduction in restructuring charges of $2.0 million, which was recorded in SG&A in the accompanying consolidated statements of income. The charges represent revisions of estimates around severance and employee-related benefits in relation to the previous restructuring initiative.