Restructuring and Non-Recurring Charges

9 Months Ended

Jun. 29, 2024

Restructuring and Related Activities [Abstract]

Restructuring and non-recurring charges are recorded within restructuring and other charges on the Condensed Consolidated Statements of Comprehensive Income. Restructuring liabilities are primarily recorded within other accrued liabilities on the Condensed Consolidated Balance Sheets.

For the three months ended June 29, 2024, the Company incurred restructuring and others charges of $9.2 million which consisted of severance from the reduction of the Company's workforce and associated site closure costs in the Company's AMER region. For the nine months ended June 29, 2024, the Company incurred restructuring and other charges of $20.3 million, which consisted of the previously mentioned site closure costs in the AMER region, as well as severance from the reduction of the Company's workforce and closure costs associated with a site in the Company's EMEA region. These costs were offset by insurance proceeds received associated with an arbitration decision regarding a contractual matter that occurred in the Company's EMEA region in fiscal 2023.

For the three and nine months ended July 1, 2023, the Company incurred restructuring and other charges of $8.9 million, which consisted of severance from the reduction of the Company's workforce and a lease agreement termination. Additionally, the Company incurred a one-time, non-recurring charge of $14.2 million relating to an arbitration decision in Norway regarding a contractual matter. The company no longer provides services for this customer.

The Company recognized a tax benefit of $1.0 million and $2.1 million, respectively, related to restructuring and other charges for the three and nine months ended June 29, 2024. The Company recognized a tax benefit of $1.8 million related to restructuring and other charges for the three and nine months ended July 1, 2023.

The Company's restructuring accrual activity for the nine months ended June 29, 2024 and the three and nine months ended July 1, 2023 is included in the tables below (in thousands):


	Termination and Severance Costs		Fixed Asset and Operating ROU Asset Impairment		Arbitration Recovery		Total
Accrual balance, as of December 30, 2023	$	—	$	—	$	—	$	—
Restructuring and other charges	9,865		3,423		(2,250)		11,038
Amounts utilized	(3,858)		(1,767)		2,250		(3,375)
Accrual balance, as of March 30, 2024	$	6,007	$	1,656	$	—	$	7,663
Restructuring and other charges	4,265		4,954		—		9,219
Amounts utilized	(5,795)		(4,887)		—		(10,682)
Accrual balance, as of June 29, 2024	$	4,477	$	1,723	$	—	$	6,200


	Termination and Severance Costs		Arbitration Charge		Total
Accrual balance, as of April 1, 2023	$	—	$	—	$	—
Restructuring and other charges	8,865		14,229		23,094
Amounts utilized	(5,332)		(14,753)		(20,085)
Accrual balance, as of July 1, 2023	$	3,533	$	(524)	$	3,009