Restructuring Costs

3 Months Ended

Mar. 30, 2024

Restructuring and Related Activities [Abstract]

In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate gross margin initiatives, and recognized $15.7 million of restructuring costs in that quarter. In addition to the costs incurred in 2023, the Company incurred an additional $10.6 million of restructuring costs in the first quarter of 2024. Charges incurred related to this initiative were comprised of contract termination costs, severance and employee-related benefits, professional fees and other, and asset impairment charges and are included in the restructuring costs line in the Company’s consolidated statement of operations. The Company expects an additional $3 million of restructuring costs to be incurred through the remainder of 2024.

During the first quarter of fiscal 2024, the Company recognized $10.6 million of restructuring costs, as follows (in thousands):


	Three Months Ended
	March 30, 2024
Cash restructuring costs:
Contract termination costs (1)	$	4,413
Severance and employee-related benefits	841
Professional fees and other	2,846
Total cash restructuring costs	8,100
Non-cash restructuring costs:
Asset impairments (2)	2,500
Total restructuring costs	$	10,600

____________________

(1) Primarily comprised of lease termination costs.

(2) Primarily comprised of impairments of property and equipment.

The following table provides the activity in the Company’s restructuring related liabilities, which are included within accounts payable, compensation and benefits and other current liabilities on the consolidated balance sheet (in thousands):


	Three Months Ended
	March 30, 2024
Balance at the beginning of year	$	8,720
Expenses	8,100
Cash payments	(11,391)
Balance at the end of the period	$	5,429