v3.24.1.1.u2
Note 3 - Restructuring Actions
 6 Months Ended
Jun. 01, 2024
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

Note 3: Restructuring Actions

 

During fiscal year 2023, the Company approved restructuring plans (the "Plans") related to organizational changes and other actions to optimize operations and integrate acquired businesses. The Plans were implemented in the second quarter of fiscal year 2023 and are currently expected to be completed during fiscal year 2026, with the majority of the charges recognized and cash payments occurring in fiscal 2023 and 2024. In implementing the Plans, the Company currently expects to incur pre-tax costs of approximately $39,100 to $44,100 for severance and related employee costs globally, other restructuring costs related to the streamlining of processes and the payment of anticipated income taxes in certain jurisdictions related to the Plans. 

 

The following table summarizes the pre-tax distribution of charges under these restructuring plans by income statement classification:

 

  

Three Months Ended

  

Six Months Ended

 
  

June 1, 2024

  

June 3, 2023

  

June 1, 2024

  

June 3, 2023

 

Cost of sales

 $1,279  $2,784  $4,194  $5,085 

Selling, general and administrative

  1,279   2,618   2,444   3,243 
  $2,558  $5,402  $6,638  $8,328 

 

The restructuring charges are all recorded in Corporate Unallocated for segment reporting purposes.

 

A summary of the restructuring liability is presented below:

 

  

Employee-Related

  

Asset-Related

  

Other

  

Total

 

Balance at December 3, 2022

 $57  $-  $-  $57 

Expenses incurred

  22,731   1,369   487   24,587 

Non-cash charges

  -   (1,369)  (453)  (1,822)

Cash payments

  (9,802)  -   (34)  (9,836)

Foreign currency translation

  (1,263)  -   -   (1,263)

Balance at December 2, 2023

 $11,723  $-  $-  $11,723 

Expenses incurred

  2,918   3,607   113   6,638 

Non-cash charges

  -   (3,607)  (102)  (3,709)

Cash payments

  (9,017)  -   (11)  (9,028)

Foreign currency translation

  (140)  -   -   (140)

Balance at June 1, 2024

 $5,484  $-  $-  $5,484 

 

Non-cash charges primarily include accelerated depreciation resulting from the cessation of use of certain long-lived assets and inventory disposals. Restructuring liabilities have been classified as a component of other accrued expenses on the Consolidated Balance Sheets.