Restructuring Liabilities (Notes)

9 Months Ended

Oct. 02, 2021

Restructuring and Related Activities [Abstract]

Restructuring Liabilities

RESTRUCTURING LIABILITIES

From time to time, the Company may implement initiatives or close or consolidate facilities in an effort to reduce costs and improve operating effectiveness. In connection with these activities, the Company may incur various costs including severance and other employee-related separation costs.

During the 39 weeks ended October 2, 2021, the Company incurred net restructuring costs of $3 million for severance and related costs associated with the announced closure of an excess facility and initiatives to improve operational effectiveness. During the 13 weeks ended October 2, 2021, net restructuring costs were de minimis. During the 13 weeks and 39 weeks ended September 26, 2020, in order to reduce operating expenses in line with the decrease in sales volume caused by the COVID-19 pandemic, the Company reduced its work force and incurred net restructuring costs of $14 million and $30 million for severance and related costs. Net restructuring liabilities were $3 million and $2 million as of October 2, 2021 and January 2, 2021, respectively.