Restructuring costs

6 Months Ended

Jul. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring costs

Restructuring costsRestructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management. These charges are included in restructuring costs in the consolidated statements of operations and comprehensive loss. Liabilities associated from restructuring costs are recorded in accrued liabilities on the consolidated balance sheets.

The Company announced a restructuring plan in December 2022 (the “2022 Restructuring Plan”) that is intended to align the Company’s organizational and management cost structure to improve profitability and cash flow. The Company expects to incur $5,000 to $6,000 of pre-tax costs under the 2022 Restructuring Plan primarily consisting of employee severance and additional expenses for third-party and other related costs. Pre-tax charges recognized during the three and six months ended July 1, 2023 and the year ended December 31, 2022 totaled $628, $890 and $4,581, respectively.

The Company adopted restructuring plans for businesses acquired to reduce headcount, reorganize management structure and consolidate certain facilities during the second half of 2021 (the “2021 Acquisition Restructuring Plan”) and during the first quarter of 2022 (the “2022 Acquisition Restructuring Plan”). The Company’s planned total pre-tax charges for the 2021 Acquisition Restructuring Plan and 2022 Acquisition Restructuring Plan are $3,500 and $2,300, respectively. There was nominal activity related to the 2021 Acquisition Restructuring Plan during the six months ended July 1, 2023 and $223, $600 $719 and $2,487 recognized during the three and six months ended July 2, 2022, and the years ended December 31, 2022 and 2021, respectively. The 2021 Acquisition Restructuring Plan is essentially completed. Costs incurred attributable to the 2022 Acquisition Restructuring Plan totaled $84 for the six months ended July 1, 2023, respectively, and $784, $984 and $1,479 during the three and six months ended July 2, 2022, and the year ended December 31, 2022, respectively.

The Company’s restructuring charges and payments for plans related to businesses recently acquired comprised of the following:

	Employee severance and temporary labor costs		Other charges		Total
Balance at December 31, 2022	$	3,760	$	—	$	3,760
Expenses incurred	745		192		937
Payments made	(2,893)		(192)		(3,085)
Balance at July 1, 2023	$	1,612	$	—	$	1,612