Restructuring Plan

12 Months Ended

Jul. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring Plan

Restructuring

During fiscal 2022, the Company incurred $27,445 of restructuring and other charges. The Company incurs restructuring and other charges in connection with management's decision to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and product lines. The Company's adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post acquisition integration activities.

Consistent with the Company's definition of restructuring and other charges, 1MPACT is an organizational redesign program initiated on the heels of a series of acquisitions since 2014 rather than a single, discrete acquisition. Since its inception, the Company has selectively engaged with leading consultants to accelerate solution design & implementation for the highest value workstreams. These costs are associated with this discrete transformation initiative and are non-routine and may not be indicative of ongoing results.

Restructuring and other charges primarily related to 1MPACT including $17,424 of third-party consulting costs, as well as $9,234 of severance costs associated with the elimination of approximately 135 positions across manufacturing, SG&A and R&D based on ongoing talent and workforce optimization efforts. Fiscal 2022 also includes $787 of costs for facility optimization efforts associated with 1MPACT, including $544 related to lease asset impairment.

During fiscal 2021, the Company incurred $9,222 of restructuring and other charges. Restructuring and other charges primarily related to $4,752 related to severance costs associated with the elimination of approximately 90 positions throughout the period, predominantly in manufacturing, SG&A and R&D. These charges are related to changing market and business conditions as well as talent shifts and resource redundancy from the Company's internal reorganization that was completed during fiscal 2021. The remaining $4,470 of restructuring and other charges related to third-party consulting costs related to 1MPACT.

During fiscal 2020, the Company incurred $1,805 of restructuring and other charges primarily related to severance costs associated with the elimination of 20 positions, predominantly in SG&A and R&D functions.

All of the restructuring and other charges are classified as Operating expenses in the Consolidated Statements of Operations and Comprehensive Income and any remaining severance obligations are expected to be paid within the next twelve months. The restructuring liability is classified as Accrued expenses in the Consolidated Balance Sheets.

The following table presents the detail of charges included in the Company’s liability for restructuring and other charges:

	Severance		Facilities & Other		Total
Restructuring liability at July 3, 2020	$	597	$	—	$	597
Restructuring charges	4,752		—		4,752
Cash paid	(4,343)		—		(4,343)
Restructuring liability at July 2, 2021	1,006		—		1,006
Restructuring charges	9,234		243		9,477
Cash paid	(5,518)		(243)		(5,761)
Restructuring liability at July 1, 2022	$	4,722	$	—	$	4,722