Restructuring and Impairment

12 Months Ended

Dec. 28, 2024

Restructuring and Related Activities [Abstract]

Restructuring and impairment activity in the current year relates to continued manufacturing optimization initiatives in workplace furnishings, including the ramp-up of the larger facility in Mexico and production relocation at certain domestic plants. These projects are comprised of cash and non-cash set-up and move costs recorded to cost of sales, including accelerated depreciation and asset relocation and disposal costs. Furthermore, current year cash restructuring costs were incurred for employee benefits in connection with facility closures and management transition in workplace furnishings and reorganization actions in residential building products.

Restructuring recorded in cost of sales in workplace furnishings in 2023 and 2022 included initial set-up and asset relocation expenses related to the establishment of manufacturing operations in Mexico and non-cash inventory valuation adjustments from the closure of a small eCommerce brand. Other restructuring costs incurred in workplace furnishings in prior-year periods are mainly comprised of cash exit costs in 2023 in connection with the divestiture of Poppin, and non-cash long-lived asset valuation charges in 2023 and 2022 in connection with office closures. Goodwill and intangible asset impairments were incurred at small workplace furnishings brands in 2023, while the corporate charges in the prior years presented primarily consist of impairments of equity investments in private entities.

Restructuring and impairment charges were as follows:


	Classification	2024		2023		2022
Workplace Furnishings

Inventory valuation	Cost of sales	$	—	$	(0.3)	$	8.1
Facility set-up and consolidation costs	Cost of sales	5.0		1.2		0.7


Long-lived asset charges	Restructuring and impairment charges	—		2.3		5.2
Exit costs	Restructuring and impairment charges	5.1		9.2		0.5
Goodwill and intangible asset impairment	Restructuring and impairment charges	—		31.0		—

Residential Building Products
Reorganization costs	Restructuring and impairment charges	1.1		—		—

General Corporate
Exit costs	Restructuring and impairment charges	—		0.8		—
Investment impairment	Restructuring and impairment charges	—		1.5		1.0
Total		$	11.2	$	45.7	$	15.5

As of December 28, 2024 and December 30, 2023, accrued restructuring expenses of $3.3 million and $1.8 million, respectively, were included in "Accounts payable and accrued expense" in the Consolidated Balance Sheets. Cash payments related to these charges in 2024 and 2023 totaled $6.0 million and $9.8 million, respectively, while payments made in 2022 were not significant. Future costs connected to current initiatives are estimated to be $2.2 million.