Restructuring and Other Charges

3 Months Ended

Apr. 02, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER CHARGES

Restructuring, asset impairment and other charges are as follows:


	Three Months Ended
	April 2, 2023		April 3, 2022
	(in thousands)
Restructuring, asset impairment and other charges(1)	$	142	$	887

(1) Charges are attributable to the EAAA reportable segment.

2021 Restructuring Plan

A summary of the restructuring reserve balance, recorded within accrued expenses in the consolidated condensed balance sheets, for the 2021 restructuring plan is presented below:


	Workforce Reduction		Retention Bonuses		Asset Impairment and Other Related Charges		Total
	(in thousands)
Balance, at January 1, 2023	$	277	$	179	$	—	$	456
Charged to expenses	23		(19)		138		142
Deductions	(300)		(160)		—		(460)
Charged to other accounts	—		—		(138)		(138)
Balance, at April 2, 2023	$	—	$	—	$	—	$	—

Below is a discussion of the restructuring plan activities under the 2021 restructuring plan.

On September 8, 2021, the Company committed to a new restructuring plan that continued to focus on efforts to improve efficiencies and decrease costs across its worldwide operations. The plan involved a reduction of approximately 188 employees and the closure of the Company’s manufacturing facility in Thailand at the end of the first quarter of 2022.

Expected charges and cumulative charges incurred to date under the 2021 restructuring plan are as follows:


	Workforce Reduction		Retention Bonuses		Asset Impairment and Other Related Charges		Total
	(in thousands)
Estimated expected charges(1)	$	2,281	$	474	$	3,259	$	6,014
Cumulative charges incurred to date(1)	2,281		474		3,259		6,014

(1) Charges are attributable to the EAAA reportable segment.

In addition, during the three months ended April 3, 2022, in conjunction with the closure of its Thailand facility, the Company recorded a write-down of inventory of $1.1 million within cost of sales in the consolidated condensed statements of operations.

The restructuring plan was expected to result in cash expenditures of approximately $3 million to $4 million for payment of employee severance, employee retention bonuses and other costs to shut down the Thailand manufacturing facility, as described above. The Company expects to complete the restructuring plan in the second quarter of 2023 following the sale of the Thailand manufacturing facility, as described in Note 16 entitled “Assets Held For Sale,” and expects the plan to yield annualized savings of approximately $1.7 million. A portion of the annualized savings was realized on the consolidated condensed statements of operations in fiscal year 2022, with the remaining portion of the annualized savings expected to be realized in fiscal year 2023.