Restructuring Activities

6 Months Ended

May 26, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

In the first quarter of 2024, our Board of Directors (the "Board") approved a multi-year global productivity initiative, “Project Fuel”, designed to accelerate the execution of our Brand Led and DTC First strategies while fueling long-term profitable growth. The first phase of the global productivity initiative occurred in the first half of 2024. The two-year initiative is expected to continue through the end of 2025. As this initiative progresses, the Company may incur additional restructuring charges, which could be significant to a future fiscal quarter or year.

During the three-month and six-month periods ended May 26, 2024, we recognized restructuring charges of $55.1 million and $171.3 million, respectively, related to Project Fuel, consisting primarily of severance and other post-employment benefit charges. As of May 26, 2024, the Company recorded $154.0 million in restructuring liabilities. The liabilities and charges are included in “Other accrued liabilities” and “Long-term employee related benefits and other liabilities” in the Company’s consolidated balance sheet and “Restructuring charges, net” in the Company’s consolidated statements of operations.

For the three-month and six-month periods ended May 28, 2023, the Company recognized net restructuring charges of $6.5 million and $17.8 million, respectively, which primarily related to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans as well as contract termination costs. During the six-month period ended May 28, 2023, the Company also recognized $18.8 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 “Restructuring charges, net” in the accompanying consolidated statements of operations.

The following tables summarize the activities associated with restructuring liabilities for the three-month and six-month periods May 26, 2024. "Net Charges (Reversals)" represents the initial charge related to the restructuring activity as well as revisions of estimates related to severance and employee-related benefits and other, "Payments" consists of cash payments for severance and employee-related benefits and other, and "Foreign Currency Fluctuations" includes foreign currency fluctuations.

	Three Months Ended May 26, 2024
	Liabilities		Net Charges (Reversals)		Payments		Foreign Currency Fluctuations		Liabilities
	February 25, 2024								May 26, 2024
	(Dollars in millions)
Severance and employee-related benefits	$	123.0	$	32.6	$	(22.6)	$	0.6	$	133.6
Contract termination costs and other	—		22.5		(2.1)		—		20.4
Total	$	123.0	$	55.1	$	(24.7)	$	0.6	$	154.0

	Six Months Ended May 26, 2024
	Liabilities		Net Charges (Reversals)(1)		Payments		Foreign Currency Fluctuations		Liabilities
	November 26, 2023								May 26, 2024
	(Dollars in millions)
Severance and employee-related benefits	$	17.8	$	146.0	$	(31.0)	$	0.8	$	133.6
Contract termination costs and other	0.2		22.5		(2.2)		(0.1)		20.4
Total	$	18.0	$	168.5	$	(33.2)	$	0.7	$	154.0

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(1)Excludes $2.0 million in stock compensation related charge recorded in Additional paid-in capital and $0.8 million in operating lease termination for the six-month period ended May 26, 2024.