Reorganization and Realignment Costs

3 Months Ended

Mar. 30, 2025

Restructuring and Related Activities [Abstract]

Reorganization and Realignment Costs

Reorganization and Realignment Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”

	Three Months Ended
	March 30, 2025		March 31, 2024
Organizational Redesign Plan	$	(950)	$	5,622
Other reorganization and realignment plans	258		51
Reorganization and realignment costs	$	(692)	$	5,673

Organizational Redesign

In February 2023, the Board of Directors approved a plan to redesign the Company’s organizational structure to better support the execution of the Company’s long-term growth strategy by maximizing organizational efficiency and streamlining decision making (the “Organizational Redesign Plan”). Additionally, in January 2024, the Board of Directors announced the appointment of Kirk Tanner as the Company’s new President and Chief Executive Officer, effective February 5, 2024. Mr. Tanner succeeded Todd A. Penegor, the Company’s previous President and Chief Executive Officer, who departed from the Company in February 2024. The Company expects to incur total costs of approximately $17,000 related to the Organizational Redesign Plan, including costs related to the succession of the President and Chief Executive Officer role. During the three months ended March 30, 2025, the Company recognized costs totaling $(950), which primarily included a reversal of a severance accrual. During the three months ended March 31, 2024, the Company recognized costs totaling $5,622, which primarily included severance and related employee costs. The Company expects to incur additional costs aggregating approximately $600, comprised primarily of share-based compensation. The Company expects costs related to the Organizational Redesign Plan to continue into 2026.

The following is a summary of the costs recorded as a result of the Organizational Redesign Plan:

	Three Months Ended				Total Incurred Since Inception
	March 30, 2025		March 31, 2024
Severance and related employee costs (a)	$	(1,088)	$	5,362	$	12,408
Recruitment and relocation costs	13		82		736
Third-party and other costs	—		50		1,116
	(1,075)		5,494		14,260
Share-based compensation (b)	125		128		2,221
Total organizational redesign	$	(950)	$	5,622	$	16,481

_______________

(a)The three months ended March 30, 2025 includes a reversal of an accrual as a result of a change in estimate.

(b)Total incurred since inception primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan.

As of March 30, 2025, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities.” The tables below present a rollforward of our accruals for the Organizational Redesign Plan.

	Balance December 29, 2024		Charges		Payments		Balance March 30, 2025
Severance and related employee costs	$	4,257	$	(1,088)	$	(1,410)	$	1,759
Recruitment and relocation costs	—		13		(13)		—
Third-party and other costs	—		—		—		—
	$	4,257	$	(1,075)	$	(1,423)	$	1,759

	Balance December 31, 2023		Charges		Payments		Balance March 31, 2024
Severance and related employee costs	$	1,692	$	5,362	$	(977)	$	6,077
Recruitment and relocation costs	—		82		(82)		—
Third-party and other costs	—		50		(50)		—
	$	1,692	$	5,494	$	(1,109)	$	6,077

Other Reorganization and Realignment Plans

Costs incurred under the Company’s other reorganization and realignment plans were not material during the three months ended March 30, 2025 and March 31, 2024. The Company does not expect to incur any material additional costs under these plans.