Restructuring and Impairment Charges

9 Months Ended

Jul. 04, 2020

Restructuring and Related Activities [Abstract]

Restructuring and impairment costs incurred in the Company's AMER segment primarily relate to the previously announced closure of our Boulder Design Center. These charges are recorded within restructuring and impairment charges on the Condensed Consolidated Statements of Comprehensive Income. Restructuring liabilities are recorded within other accrued liabilities on the Condensed Consolidated Balance Sheets.

There were no restructuring and impairment costs incurred during the three months ended July 4, 2020. For the nine months ended July 4, 2020, the Company incurred restructuring and impairment costs of $6.0 million, which consisted of the following:

•$3.1 million of fixed asset and operating right-of-use asset impairment at the Company's Boulder Design Center; and

•$2.9 million of severance from the reduction of the Company's workforce primarily at the Boulder Design Center.

The Company recognized a tax benefit of $0.6 million related to restructuring charges in the nine months ended July 4, 2020.

The Company's restructuring accrual activity for the three and nine months ended July 4, 2020 is included in the table below (in thousands):


	Fixed Asset and Operating Right-of-Use Asset Impairment		Employee Termination and Severance Costs		Total
Accrual balance, January 4, 2020	$	—	$	447	$	447
Restructuring and impairment costs	3,054		2,949		6,003
Amounts utilized	(3,054)		(2,049)		(5,103)
Accrual balance, April 4, 2020	$	—	$	1,347	$	1,347
Restructuring and impairment costs	—		—		—
Amounts utilized	—		(1,089)		(1,089)
Accrual balance, July 4, 2020	$	—	$	258	$	258

There was no material restructuring activity for the three months ended January 4, 2020.

All impairment costs were expensed in the three months ended April 4, 2020. The restructuring accrual balance is expected to be utilized by the end of the fourth quarter of fiscal 2020.