Restructuring Costs

6 Months Ended

Nov. 28, 2021

Restructuring and Related Activities [Abstract]

During fiscal year 2020, the Company announced a restructuring plan to drive enhanced profitability, focus the business on its strategic assets and redesign the organization to be the appropriate size to compete and thrive. This includes a reduction-in-force, a reduction in leased office spaces and the sale of non-strategic assets.

The following table summarizes the restructuring costs recognized in the Company’s Consolidated Statements of Comprehensive (Loss) Income, by Business Segment:


(in thousands)	Curation Foods		Lifecore		Other		Total
Three Months Ended November 28, 2021
Asset write-off costs	$	—	$	—	$	—	$	—
Employee severance and benefit costs	410		—		—		410
Lease costs	—		—		—		—
Other restructuring costs	293		—		709		1,002
Total restructuring costs	$	703	$	—	$	709	$	1,412

(in thousands)	Curation Foods		Lifecore		Other		Total
Six Months Ended November 28, 2021
Asset write-off costs	$	(567)	$	—	$	—	$	(567)
Employee severance and benefit costs	680		—		—		680
Lease costs	468		—		—		468
Other restructuring costs	1,318		—		2,075		3,393
Total restructuring costs	$	1,899	$	—	$	2,075	$	3,974

Asset write-off costs

Asset write-off costs are costs related to impairment or disposal of property and equipment as part of the Company's restructuring plan to drive enhanced profitability, focus the business on its strategic assets and redesign the organization to be the appropriate size to compete and thrive. These costs are included in restructuring costs within the Consolidated Statements of Statements of Comprehensive (Loss) Income. See the Assets Held for Sale section within Note 1 for additional information.

In the first quarter of fiscal year 2021, the Company sold its interest in Ontario. The Company received net cash proceeds of $4.9 million in connection with the sale and recorded a gain of $2.8 million.

In the first quarter of fiscal year 2021, the Company recognized an $8.8 million impairment loss related to its Hanover building and related assets which were sold in the second quarter of fiscal year 2021.

In the first quarter of fiscal year 2022, the Company recognized a $0.6 million gain on sale related to its Rock Hill, South Carolina distribution facility.

Employee severance and benefit costs

Employee severance and benefit costs are costs incurred as a result of reduction-in-force driven by our restructuring plan and closure of offices and facilities. These costs were driven primarily by the closure of our San Rafael, California office, Santa Clara, California office, Los Angeles, California office, the sale of our Hanover manufacturing facility, and our transportation management, warehousing, and transportation services agreement with Castellini Company, LLC.

Lease Costs

In August 2020, the Company closed its leased Santa Clara, California office and entered into a sublease agreement. In the fourth quarter of fiscal year 2020 the Company closed its leased Los Angeles, California office and plans to sublease the office.

Other restructuring costs

Other restructuring costs are primarily related to consulting costs incurred in connection with the execution of the Company’s restructuring plan to drive enhanced profitability, focus the business on its strategic assets, and redesign the organization to be the appropriate size to compete and thrive.

The following table summarizes the restructuring costs recognized in the Company’s Consolidated Statements of (Loss) Income, by Business Segment, since inception of the restructuring plan in fiscal year 2020 through the six months ended November 28, 2021:


	Curation Foods		Lifecore		Other		Total
(in thousands)
Asset write-off costs, net	$	19,898	$	—	$	418	$	20,316
Employee severance and benefit costs	4,183		—		784		4,967
Lease costs	3,102		—		26		3,128
Other restructuring costs	7,228		—		5,803		13,031
Total restructuring costs	$	34,411	$	—	$	7,031	$	41,442

The total expected cost related to the restructuring plan is approximately $45.0 million.