Restructuring Activities

3 Months Ended

Mar. 30, 2024

Restructuring and Related Activities [Abstract]

Summary of 2022 Restructuring Plan

In April 2022, management approved and commenced a restructuring plan that will better position us for stronger performance. The restructuring plan will mainly reduce headcount and consolidate facilities. As a result of this restructuring plan, we analyzed the need to write-down inventory and impair long-lived assets, including operating lease right-of-use assets. During

the three months ended March 30, 2024, we recorded total charges of $1.4 million. Cumulative through the three months ended March 30, 2024, we recorded aggregate total charges of $22.9 million ($0.8 million of which was recorded as cost of sales). As of March 30, 2024, we estimate the remaining amount of charges related to this initiative will be $4.0 million to $6.0 million in total pre-tax restructuring charges through 2024. Of these charges, we estimate $3.5 million to $5.0 million to be cash payments for employee separation and other facility consolidation related expenses, and $0.5 million to $1.0 million to be non-cash charges for impairment of long-lived assets.

In the Electronics Systems segment, we recorded charges of $0.4 million and $0.1 million during the three months ended March 30, 2024 for severance and benefits that were classified as restructuring charges and other restructuring charges, respectively. Cumulative through the three months ended March 30, 2024, we recorded total charges for severance and benefits that were classified as restructuring charges, accelerated depreciation of property and equipment that was classified as restructuring charges, charges for inventory write down that was classified as cost of sales, and other restructuring of $10.0 million, $0.3 million, $0.3 million, and $0.2 million, respectively.

In the Structural Systems segment, we recorded $0.2 million and $0.7 million during the three months ended March 30, 2024 for severance and benefits that were classified as restructuring charges and other restructuring charges, respectively. Cumulative through the three months ended March 30, 2024, we recorded total charges for severance and benefits that were classified as restructuring charges, accelerated depreciation of property and equipment/impairment of property and equipment that was classified as restructuring charges, charges for inventory write down that was classified as cost of sales, and other restructuring of $6.1 million, $2.0 million, $0.5 million, and $3.5 million, respectively.

Our restructuring activities during the three months ended March 30, 2024 were as follows (in thousands):


	December 31, 2023		Three Months Ended March 30, 2024								March 30, 2024
	Balance		Charges		Cash Payments		Non-Cash Payments		Change in Estimates		Balance
Severance and benefits	$	5,389	$	536	$	(1,404)	$	—	$	—	$	4,521

Property and equipment accelerated depreciation due to restructuring	—		—		—		—		—		—

Inventory write down	—		—		—		—				—
Other	—		834		(834)		—		—		—
Ending balance	$	5,389	$	1,370	$	(2,238)	$	—	$	—	$	4,521

The restructuring activities accrual for severance and benefits of $4.5 million as of March 30, 2024 was included as part of accrued and other liabilities and is expected to be paid out through 2024.