On November 3, 2020, as part of the Company’s COVID-related cost reduction efforts and to better align the Company’s general and administrative expenses with future strategy, we made the determination to reorganize and restructure the Company’s corporate team. The Company expects that this restructuring plan will result in annual general and administrative expense savings of $3.5 to $4.0 million. This was accomplished through corporate expense optimization, consolidating our shop support services, and through other expense and staff reductions. As a result, we reduced corporate employment levels by approximately 35 employees in

the fourth quarter of 2020. The restructuring charges recognized in the fourth quarter of 2020 consist primarily of one-time termination benefits to employees. The Company substantially completed its planned restructuring actions during 2020, but we will continue to evaluate our cost structure and seek opportunities for further efficiencies and cost savings as part of our ongoing strategy. As such, we may incur additional restructuring related charges or adjustments to previously recorded charges in the future, however, we are unable to estimate the amount of charges at this time.

The accrued restructuring balances as of December 27, 2020 represent expected future cash payments required to satisfy our remaining obligations, which are expected to be paid throughout 2021.

	Total
	(Thousands)
Balance as of December 29, 2019	$	—
Charges incurred		1,667
Payments made		(178	)
Balance as of December 27, 2020	$	1,489