Restructuring and Impairment Charges

6 Months Ended

Apr. 03, 2021

Restructuring and Related Activities [Abstract]

Restructuring and impairment charges incurred in the Company's EMEA and AMER segments, in the periods presented, primarily relate to the reductions-in-force and 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 (Loss). Restructuring liabilities are recorded within other accrued liabilities on the Condensed Consolidated Balance Sheets.

For the three and six months ended April 3, 2021, the Company incurred restructuring and impairment charges of $2.0 million, which consisted of severance from the reduction of the Company's workforce primarily in the EMEA region.

For the three and six months ended April 4, 2020, the Company incurred restructuring and impairment charges 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 $0.2 million related to restructuring charges in the three and six months ended April 3, 2021 and $0.6 million related to restructuring charges in the three and six months ended April 4, 2020.

The Company's restructuring accrual activity for the three months ended April 3, 2021 and April 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 2, 2021	$	—	$	22	$	22
Restructuring and Impairment Charges	—		2,029		2,029
Amounts utilized	—		(440)		(440)
Accrual balance, April 3, 2021	$	—	$	1,611	$	1,611


	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 Charges	3,054		2,949		6,003
Amounts utilized	(3,054)		(2,049)		(5,103)
Accrual balance, April 4, 2020	$	—	$	1,347	$	1,347

There was no material restructuring activity for the three months ended January 2, 2021 or January 4, 2020.

The restructuring accrual balance for the three months ended April 3, 2021 is expected to be utilized by the end of the fourth quarter of fiscal 2021.