XML 34 R23.htm IDEA: XBRL DOCUMENT v3.24.3
Restructuring Costs
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
During the first quarter of 2024, Lionscore approved a plan to permanently close certain production lines at the VIE's FDL factory and involuntarily separate certain direct and indirect manufacturing employees during 2024, as footwear and production volume is shifted to a third-party supplier (the "Plan"). The remaining direct and indirect manufacturing employees at FDL continue to service the remaining production lines. In relation to the Plan, during the nine months ended September 30, 2024, the Company recorded involuntary employee termination costs of $7.0 million included in selling, general and administrative expenses on the unaudited condensed consolidated statement of operations. Accrued restructuring costs associated with the Plan are included within accrued expenses and other liabilities on the unaudited condensed consolidated balance sheet as they are expected to be paid out within a year. There are no further material costs expected to be incurred in relation to the Plan. See Note 1 for further information.
The activity related to the Plan was as follows:
(in thousands)Three months ended September 30, 2024Nine months ended September 30, 2024
Balance at beginning of period$2,013 $— 
Provision— 6,967 
Payments(386)(5,340)
Balance at end of period$1,627 $1,627 
During the fourth quarter of 2024, Lionscore approved an additional plan to permanently close the VIE's FDL factory in the first quarter of 2025, including the remaining production lines, as it continues to shift footwear production to a third-party supplier. As a result of this closure, FDL plans to involuntarily separate the remaining employees of the FDL factory (the "FDL Closure Plan"). In relation to the FDL Closure Plan, the Company expects to record additional involuntary employee termination costs of approximately $12 million during the fourth quarter of 2024. The Company continues to evaluate the impact of the FDL Closure Plan, which may further impact the Company’s financial position and results of operation in future periods.