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Restructuring Plan | 3 Months Ended
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Jan. 02, 2021
Restructuring and Related Activities [Abstract] |
Restructuring Plan | Restructuring PlanOn June 23, 2020, the Company initiated a restructuring plan as part of its efforts to reduce operating expenses and preserve liquidity due to the uncertainty and challenges stemming from the COVID-19 pandemic (the "2020 restructuring plan"). As part of the 2020 restructuring plan, the Company eliminated approximately 12% of its global headcount and closed its New York retail store and six satellite offices in order to better align resources to provide further operating flexibility and more efficiently position the business for its long-term strategy. Activities under the 2020 restructuring plan were substantially completed in the first quarter of fiscal 2021. Total pre-tax restructuring and related costs under the 2020 restructuring plan were $26.4 million, which was incurred in fiscal 2020. For the assets deemed to be impaired as part of the 2020 restructuring, the Company estimated fair value using an income-approach based on management’s forecast of future cash flows expected to be derived from the property. In the first quarter of fiscal 2021, the Company negotiated the early termination of a facility lease that was part of the 2020 restructuring and recorded a gain of $2.8 million, representing the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. The gain was recognized as a credit in sales and marketing expenses on the condensed consolidated statements of operations and comprehensive income. The cash paid related to the settlement of the lease liability as part of the early termination is included within "Cash paid for amounts included in the measurement of lease liabilities" within the supplemental disclosure on the condensed consolidated statements of cash flows. The remaining restructuring and related costs incurred in the first quarter of fiscal 2021 were nominal.
| Costs incurred in the three months ended January 2, 2021
(In thousands) |
Employee related costs | $ | 190 |
Gain on early termination of facility lease | (2,801) |
Total | $ | (2,611) |
The following table represents the restructuring and related costs recorded in the Company's condensed consolidated statements of operations and comprehensive income:
| Three Months Ended
| January 2, 2021
(In thousands) |
Research and development | $ | 25 |
Sales and marketing | (2,636) |
Total | $ | (2,611) |
The following table summarizes the Company's restructuring activities recorded in accrued expenses and accrued compensation within the condensed consolidated balance sheets:
(In thousands) | Employee Related Costs |  | Other Restructuring Costs |  | Total
Balance at October 3, 2020 | $ | 1,620 |  |  | $ | 2,971 |  |  | $ | 4,591 |
Restructuring charges | 190 |  |  | (556) |  |  | (366) |
Cash paid | (1,224) |  |  | (1,928) |  |  | (3,152) |
Balance at January 2, 2021 | $ | 586 |  |  | $ | 487 |  |  | $ | 1,073 |
These costs required the Company to make certain judgments and estimates regarding the amount and timing of the 2020 restructuring plan and related impairment charges or recoveries. The estimated liability could change subsequent to its recognition as part of the 2020 restructuring plan, requiring adjustments to the expense and liability recorded. On a quarterly basis, the Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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