Restructuring and Related Charges

12 Months Ended

Jul. 01, 2023

Restructuring and Related Activities [Abstract]

Note 13. Restructuring and Related Charges

The Company’s restructuring events are primarily intended to reduce costs, consolidate operations, integrate various acquisitions, streamline product manufacturing and address market conditions. Restructuring charges include severance, benefit and outplacement costs to eliminate a specified number of positions. The timing of associated cash payments is dependent upon the jurisdiction of the affected employees and can extend over multiple periods.

Fiscal 2023 Plan

During the second quarter of fiscal 2023, Management approved a restructuring and workforce reduction plan (the Fiscal 2023 Plan) to better align the Company’s workforce with current business needs and strategic growth opportunities. The Company expects approximately 5% of its global workforce to be affected.

As a result, the Company recorded charges of $12.1 million during the year to Restructuring and related charges (benefits) line within our Consolidated Statements of Operations, of which $10.4 million is related to Phase I of the Fiscal 2023 Plan and $1.7 million is related to Phase II of the Fiscal 2023 Plan. The first phase of the Fiscal 2023 Plan impacted all segments and corporate functions and the Company anticipates this phase of the Fiscal 2023 Plan to be substantially complete by the end of the first quarter of fiscal 2024. The second phase of the Fiscal 2023 Plan is primarily focused on reducing costs in our SE segment and the Company anticipates this phase of the Fiscal 2023 Plan to be substantially complete by the end of the second quarter of fiscal 2024.

A summary of the activity in the restructuring accrual is outlined below (in millions):





	Balance as of July 2, 2022		Restructuring and related charges		Cash Settlements		Balance as of July 1, 2023
Fiscal 2023 Plan
NSE/Corp	$	—	$	9.1	$	(5.6)	$	3.5

OSP	—		1.3		(0.7)		0.6
Fiscal 2023 Plan Phase I	—		10.4		(6.3)		4.1
NSE	—		1.7		—		1.7
Fiscal 2023 Plan Phase II	—		1.7		—		1.7
Total (1)	$	—	$	12.1	$	(6.3)	$	5.8

(1) Included in Other current liabilities on the Consolidated Balance Sheets as of July 1, 2023.

Other Plans

During fiscal 2022 and 2021, the Company recorded a benefit related to restructuring actions of $0.1 million and $1.6 million, respectively.