Restructuring Costs

9 Months Ended

Sep. 28, 2024

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

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 $2.0 million and $14.4 million of restructuring costs during the

three and nine months ended September 28, 2024, respectively. 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 condensed consolidated

statement of operations. The Company expects an additional $2 million to $3 million of restructuring costs to be incurred

through the remainder of 2024, primarily due to lease contract termination costs. The following table provides a

summary of the Company’s restructuring costs during the during the three and nine months ended September 28, 2024:

	Three Months Ended	Nine Months Ended
	September 28, 2024	September 28, 2024
Cash restructuring costs:
Contract termination costs (1)	$300	$4,483
Severance and employee-related benefits	1,663	2,905
Professional fees and other	—	4,494
Total cash restructuring costs	1,963	11,882
Non-cash restructuring costs:
Asset impairments (2)	—	2,500
Total restructuring costs	$1,963	$14,382

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(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 condensed consolidated balance sheet

(in thousands):

	Nine Months Ended
	September 28, 2024
Balance at the beginning of year	$8,720
Expenses	11,882
Cash payments	(19,282)
Balance at the end of the period	$1,320

Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative

$30.1 million of restructuring costs, as follows (in thousands):

	Cumulative
	September 28, 2024
Cash restructuring costs:
Contract termination costs (1)	$11,893
Severance and employee-related benefits	7,871
Professional fees and other	5,604
Total cash restructuring costs	25,368
Non-cash restructuring costs:
Asset impairments (2)	4,742
Total restructuring costs	$30,110

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(1)Primarily comprised of lease termination costs.

(2) Includes impairments of both lease right-of-use assets and property and equipment.