Restructuring

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

Restructuring costs in 2021 relate to business simplification and capacity expansion actions, including the planned exit of a small office furniture brand, restructuring of a workplace furnishings eCommerce business, and the addition of a new manufacturing facility in Mexico. Charges incurred by the workplace furnishing segment include $7.4 million of inventory valuation adjustments and $0.2 million of facility set-up costs including asset relocation and related travel recorded to "Cost of sales" in the Consolidated Statements of Comprehensive Income. $0.5 million of related severance costs were recorded to "Restructuring and impairment charges" in the Consolidated Statements of Comprehensive Income, of which $0.2 million was incurred by the workplace furnishings segment, with the remainder being a corporate charge.

No restructuring charges were recorded in 2020, while in 2019 restructuring costs of $2.4 million were incurred related to a structural realignment in the workplace furnishings segment, primarily severance.

As of January 1, 2022, $0.5 million of accrued restructuring expenses are included in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets. Cash payments made for restructuring costs in 2021 related to the business simplification and

capacity expansion actions described above were not significant, and any future restructuring costs connected to these current initiatives are not expected to be material.