XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.20.2

Restructuring Expense | 3 Months Ended
--- | ---
Aug. 29, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Expense | Restructuring Expense During the fourth quarter of fiscal 2018, the Company announced a facilities consolidation plan related to its International Contract segment. This impacted certain office and manufacturing facilities in the United Kingdom and C hina. The plan is expected to generate cost savings of approximately $3 million. To date, the Company recognized restructuring and impairment expenses of $5.0 million, with a net credit of $2.8 million recognized to-date in fiscal 2021 and the remainder in fiscal 2020, 2019 and 2018. Thes e expenses related to the facilities consolidation plan, comprised primarily of an asset impairment recorded against an office building in the United Kingdom that was vacated and the consolidation of the Company's manufacturing facilities in China. No material future restructuring costs related to the plan are expected as the plan is substantially complete. The office building and related assets in China were sold in the first quarter of fiscal 2021, resulting in a gain of approximately $3.4 million, which is included within "Restructuring expense" in the Condensed Consolidated Statements of Comprehensive Income. The office building and related assets in the United Kingdom have a carrying value of approximately $4.3 million and meet the criteria to be designated as assets held for sale. Therefore these assets have been classified as current assets and included within "Other current assets" in the Condensed Consolidated Balance Sheets at August 29, 2020. In the second quarter of fiscal 2020, the North America Contract segment initiated restructuring discussions with labor unions related to its Nemschoff operation in Wisconsin. The discussions were concluded in the third quarter of fiscal 2020 and as a result, the Company anticipates the total estimated costs related to the actions will be approximately $5 million. These restructuring costs relate to potential partial outsourcing and in-sourcing strategies, long-lived asset impairments and employee-related costs. To date, the Company has recorded approximately $3.0 million in pre-tax restructuring expense related to this plan, with a net credit of $0.2 million recognized in fiscal 2021 and the remainder in fiscal 2020. The plan is expected to be completed in fiscal 2021. In the second quarter of fiscal 2020, the Company initiated a reorganization of the Global Sales and Product teams. The reor ganization activities occurred primarily in the North America business with additional costs incurred Internationally. The Company has recorded a total of $2.6 million in pre-tax restructuring expense to date related to this plan. The reorganization is complete and no future costs related to this plan are expected. In the third quarter of fiscal 2020, the Company announced a reorganization of the Retail segment's leadership team. The Company recognized pre-tax severance and employee related restructuring expense of $2.2 million related to the plan. No material future restructuring costs related to the plan are expected as the plan is substantially complete. The following table provides an analysis of the changes in the restructuring costs reserve for the above plans for the three months ended August 29, 2020:
(In millions) | Severance and Employee-Related |  | Exit or Disposal Activities | Total
May 30, 2020 | $ | 5.9 |  |  | $ | 0.8 |  | $ | 6.7 |
Restructuring Costs | 0.1 |  |  | (3.1) |  | $ | (3.0) |
Amounts Paid | (2.4) |  |  | (0.1) |  | $ | (2.5) |
Other* | $ | — |  |  | $ | 3.4 |  | $ | 3.4 |
August 29, 2020 | $ | 3.6 |  |  | $ | 1.0 |  | $ | 4.6 |
*This represents the gain on the sale of office building and related assets in China which were recorded as restructuring cost, however, do not impact the restructuring reserve. In the fourth quarter of fiscal 2020, the Company announced a restructuring pl an (“May 2020 restructuring plan") to substantially reduce expenses in response to the impact of the COVID-19 pandemic and related restrictions. These activities included voluntary and involuntary reductions in its North American and International workforces. Combined, these actions resulted in the elimination of approximately 400 full-time positions throughout the Company in various businesses and functions. As the result of these actions, the Company projects an annualized expense reduction of approximately $40 million. To date, the Company incurred severance and related charges of $17.0 million with $1.8 million recognized in fiscal 2021 and the remainder in fiscal 2020. No material future restructuring costs related to the plan are expected as the plan is substantially complete and t he remaining amounts will be paid in fiscal 2021. The following table provides an analysis of the changes in the restructuring cost reserve for the three months ended August 29, 2020:
(In millions) | Severance and Employee-Related |  |
May 30, 2020 | $ | 15.3 |  |  |
Restructuring Costs | 1.8 |  |  |
Amounts Paid | (9.6) |  |  |
August 29, 2020 | $ | 7.5 |  |  |
The following is a summary of restructuring expenses by segment for the periods indicated:
| Three Months Ended |  |
(In millions) | August 29, 2020 |  | August 31, 2019
North America Contract | $ | 1.6 |  |  | $ | 1.6 |
International Contract | (2.8) |  |  | 0.2 |
Total | $ | (1.2) |  |  | $ | 1.8 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration