Restructuring and Related Activities

12 Months Ended

Feb. 23, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

21. RESTRUCTURING ACTIVITIES

In Q4 2024, we initiated a series of restructuring actions to enhance our long-term operational effectiveness in Asia Pacific. These actions involve the involuntary terminations of approximately 100 positions in Asia Pacific. We expect to incur restructuring costs of approximately $4 in the International segment related to these actions, consisting of cash severance payments, other separation-related benefits, and other related costs. We recorded $2.5 related to employee termination costs and $0.4 related to the impairment of a right-of-use operating lease asset in the International segment for these actions during 2024. We expect these actions to be substantially completed by the end of 2025.

In Q4 2024, we initiated restructuring actions to move a regional distribution center in the Americas segment. These actions involve the involuntary terminations of approximately 50 to 55 positions and the relocation of approximately 15 to 20 positions in the Americas segment. We expect to incur restructuring costs of approximately $3 in the Americas segment related to these actions consisting of cash severance payments, other separation-related benefits, and other related costs. We incurred restructuring costs of $0.7 in the Americas segment for these actions during 2024. We expect these actions to be substantially completed by the end of 2025.

In Q3 2024, we initiated a series of restructuring actions to reallocate production of our product portfolio across our industrial footprint to take advantage of manufacturing centers of excellence. These actions involve the involuntary terminations of approximately 15 positions in the Americas segment. We expect to incur restructuring costs of approximately $2 to $3 in the Americas segment related to these actions consisting of cash severance payments, other separation-related benefits, and other related costs. We incurred restructuring costs of $1.1 in the Americas segment for these actions during 2024. We expect these actions to be substantially completed by the end of 2025.

In Q1 2024, we announced a series of restructuring actions in response to continued decline in order volume, persisting inflationary pressures, and decreasing plant utilization. These actions involve the involuntary terminations of approximately 40 to 50 salaried roles in EMEA, the elimination of approximately 240 positions in Asia Pacific, and the involuntary terminations of approximately 30 employees in the Americas segment in connection with the closing of our regional distribution center in Atlanta, Georgia. We expect to incur restructuring costs of approximately $16 to $18 in the International segment and approximately $1 in the Americas segment related to these actions, consisting of cash severance payments and other separation-related benefits. We incurred restructuring costs of $16.3 in the International segment and $0.5 in the Americas segment for these actions during 2024. These actions are substantially complete.

In Q4 2023, we initiated a series of restructuring actions, primarily related to the wind down of our customer aviation function in connection with our strategy to reinvent our go-to-market model and create new customer experiences. The restructuring actions included terminations of approximately 25 salaried employees in the Americas segment. We incurred $1.0 and $3.6 of restructuring costs in the Americas segment for these actions during 2024 and 2023, respectively, consisting of cash severance payments and other separation-related benefits. These restructuring actions are complete.

In Q3 2023, our Board of Directors approved restructuring actions to reduce operational spending across certain functions in response to a decline in order volume and lower-than-expected return-to-office trends in the Americas segment. The restructuring actions included terminations of approximately 130 salaried employees in the Americas segment. In 2023, we incurred $10.9 of restructuring costs related to these actions in the Americas segment, consisting of cash severance payments and other separation-related benefits. These restructuring actions are complete.

In Q4 2022, our Board of Directors approved restructuring actions related to the exit of our technology business in connection with our strategy to shift from offering a portfolio of technology products toward partnering with technology companies to create integrated collaborative solutions. The restructuring actions primarily included involuntary terminations of the majority of salaried employees of the business and the termination of supplier and customer contracts related to the business. We incurred $4.7 in restructuring costs in the Americas segment related to these actions, primarily consisting of cash severance payments and payment of other business exit costs. In 2023, we recorded $1.8 related to employee termination costs, $2.4 related to business exit and other related costs and $0.5 related to the impairment of a right-of-use operating lease asset which was utilized by our technology business. These restructuring actions are complete.

The following table details the changes in the restructuring reserve balance during 2024 and 2023:


	Workforce reductions		Business exit and related costs		Total
Balance as of February 25, 2022	$	—	$	—	$	—
Additions	16.3		2.4		18.7
Payments	(12.3)		(2.4)		(14.7)
Balance as of February 24, 2023	$	4.0	$	—	$	4.0
Additions	21.8		0.2		22.0
Payments	(13.4)		(0.2)		(13.6)
Adjustments (1)	(0.1)		—		(0.1)
Balance as of February 23, 2024	$	12.3	$	—	$	12.3

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(1)Primarily represents currency translation adjustments.