Note 3 - Restructuring Actions

3 Months Ended

Mar. 02, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note 3: Restructuring Actions

During fiscal year 2023, the Company approved restructuring plans (the "Plans") related to organizational changes and other actions to optimize operations and integrate acquired businesses. The Plans were implemented in the second quarter of fiscal year 2023 and are currently expected to be completed during fiscal year 2026, with the majority of the charges recognized and cash payments occurring in fiscal 2023 and 2024. In implementing the Plans, the Company currently expects to incur pre-tax costs of approximately $39,100 to $44,100 for severance and related employee costs globally, other restructuring costs related to the streamlining of processes and the payment of anticipated income taxes in certain jurisdictions related to the Plans. 

The following table summarizes the pre-tax distribution of charges under these restructuring plans by income statement classification:

	Three Months Ended
	March 2, 2024		March 4, 2023
Cost of sales	$	2,915	$	2,301
Selling, general and administrative		1,165		625
	$	4,080	$	2,926

The restructuring charges are all recorded in Corporate Unallocated for segment reporting purposes.

A summary of the restructuring liability is presented below:

	Employee-Related			Asset-Related			Other			Total
Balance at December 3, 2022	$	57		$	-		$	-		$	57
Expenses incurred		22,731			1,369			487			24,587
Non-cash charges		-			(1,369	)		(453	)		(1,822	)
Cash payments		(9,802	)		-			(34	)		(9,836	)
Foreign currency translation		(1,263	)		-			-			(1,263	)
Balance at December 2, 2023	$	11,723		$	-		$	-		$	11,723
Expenses incurred		1,611			2,417			52			4,080
Non-cash charges		-			(2,417	)		(41	)		(2,458	)
Cash payments		(4,118	)		-			(11	)		(4,129	)
Foreign currency translation		(142	)		-			-			(142	)
Balance at March 2, 2024	$	9,074		$	-		$	-		$	9,074

Non-cash charges primarily include accelerated depreciation resulting from the cessation of use of certain long-lived assets. Restructuring liabilities have been classified as a component of other accrued expenses on the Consolidated Balance Sheets.