Restructuring Activities

12 Months Ended

Dec. 28, 2024

Restructuring and Related Activities [Abstract]

Note 6. Restructuring Activities

In April 2024, the company announced a cost savings program to improve operational performance, which includes employee termination benefits associated with a reduction-in-force ("2024 RIF") and other expense optimization initiatives which were substantially complete by the end of Fiscal 2024. The company also incurred consulting costs associated with implementing the restructuring program.

In February 2023, to improve operational effectiveness, increase profitable sales, and better meet customer requirements, the company announced a restructuring of plant operation responsibilities from the sales function to the supply chain function. As part of that restructuring, we incurred costs for employee termination benefits and other cash charges, which were primarily related to the voluntary employee separation incentive plan (the "2023 VSIP"), reduction-in-force (the "2023 RIF"), and employee relocation costs. There were no additional costs incurred during Fiscal 2024 for the 2023 VSIP, 2023 RIF, and employee relocation costs. These costs are recorded in the restructuring charges line item of the Consolidated Statements of Income.

The tables below present the components of costs associated with the restructuring programs detailed above (amounts in thousands):


	Fiscal 2024
Restructuring charges:
2024 RIF (1)	$	7,403
Restructuring-related implementation costs (2)		2,979
Total restructuring charges	$	10,382


	Fiscal 2023
Restructuring charges:
2023 VSIP	$	5,229
2023 RIF		899
Relocation costs		971
Total restructuring charges (1)	$	7,099

(1)

Presented on our Consolidated Statements of Income.

(2)

Costs are recorded in the selling, distribution and administrative expenses line item of our Consolidated Statements of Income.

The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands):


	2023 VSIP			2024 RIF			Total
Liability balance (1) at December 30, 2023	$	1,429		$	—		$	1,429
Charges		—			7,403		$	7,403
Cash payments		(1,429	)		(7,317	)	$	(8,746	)
Liability balance (1) at December 28, 2024	$	—		$	86		$	86

(1)

Recorded in the other accrued current liabilities line item of our Consolidated Balance Sheets.