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RESTRUCTURING AND CANCELLATION OF PROJECT | 6 Months Ended
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Mar. 30, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND CANCELLATION OF PROJECT | 16. RESTRUCTURING AND CANCELLATION OF PROJECT Previously referred to as Project W, the Company was engaged with one of its strategic customers (the "Customer") to support the Customer with the development and future mass production of certain technologies relating to advanced display (the "Project"). In connection with the Customer's strategic review of its business, the Customer has informed the Company that it has cancelled the Project. In connection with the foregoing, on March 11, 2024, the Company committed to a plan to cease operational activities and commence wind down activities concerning various aspects of Project W. The wind down activities are ongoing and are expected to be substantially completed by end of fiscal year 2024. Wind down charges as a result of these activities incurred during the period ended March 30, 2024 were accounted in accordance with ASC 330, Inventory and ASC 712, Compensation—Nonretirement Postemployment Benefits. The Company also performed the impairment tests of all associated assets with reference to the guidance under ASC 330, Inventory and ASC 360, Property, Plant and Equipment. The wind down charges and impairments are primarily recorded in the Advanced Solutions reportable segment. Based on current information available, we do not expect any material future charges with respect to the cancellation of Project W that will be classified as exit and disposal costs under the guidance of ASC 420, Exit or Disposal Cost Obligations. We plan to fund the cash costs through existing cash balances. In addition to the cancellation of Project W, in March 2024, the Company also implemented a restructuring program to reallocate resources within the Company to enhance its performance, boost productivity and drive efficiency initiatives. The accrued costs pertaining to ongoing employee benefit arrangements arising from the restructuring program as of March 30, 2024 is accounted in accordance with ASC 712 and is expected to be paid by the end of fiscal year 2024. The following table presents a summary of the charges related to the cancellation of Project W and restructuring expenses incurred for the period ended March 30, 2024.
(in thousands) |  |  |  | Total Recognized as of |  |
Charges |  | Statement of Operations Classification |  | March 30, 2024 |  |
Inventory write-down |  | Cost of sales |  | $ | 57,333 |  |  |
Purchase Order cancellation charges |  | Cost of sales |  | $ | 2,834 |  |  |
Employee termination benefits |  | Selling, general and administrative |  | $ | 2,940 |  |  |
Impairment charges relating to long-lived assets |  | Impairment charges |  | $ | 44,472 |  |  |
|  |  |  | $ | 107,579 |  |  |
Inventory write-down In determining the value of our inventory, we consider indicators that net realizable value may be lower than cost based upon projections about future consumption, and market conditions. We recorded a write-down to inventory totaling $57.3 million with a corresponding increase to cost of sales in our consolidated condensed statement of operations for the three and six months ended March 30, 2024. See Note 2 for inventory balances. Employee termination benefits At March 30, 2024, accrued employee termination costs of $2.9 million related to other severance and employee costs incurred as a result of the cancellation of Project W and the restructuring program, primarily pertaining to ongoing employee benefit arrangements arising, were recorded within accrued compensation and benefits in our consolidated condensed balance sheet. Purchase Order cancellation charges At March 30, 2024, $2.8 million of purchase order cancellation charges are included in accrued expenses and other current liabilities in our consolidated condensed balance sheet. These costs relate to a net loss on firm purchase commitments for goods for inventory in accordance with ASC 330. Impairment charges relating to long-lived assets At March 30, 2024, we recorded an impairment charge of $38.0 million related to property, plant and equipment, $3.0 million related to the ROU assets and $3.5 million related to Asset Retirement Obligation (ARO).

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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