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Restructuring Activities | 6 Months Ended
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Nov. 28, 2020
Restructuring Activities [Abstract] |
Restructuring Activities | 9. Restructuring Activities The Company initiated its global restructuring and business transformation plan in North America and Asia Pacific (the “North America and APAC Plan”) in March 2020 and in Europe (the “European Plan”) in September 2020. Both the North America and APAC Plan and the European Plan consist of two key components: (i) an effort to streamline the management and organizational structure and eliminate certain positions as well as exit certain markets to focus on core solution offerings and core high growth clients; and (ii) a strategic rationalization of the Company’s physical geographic footprint and real estate spend to focus investment dollars in high growth core markets for greater impact. In connection with the execution of the European Plan, the Company changed its internal management structure and its reporting structure of financial information used to assess performance and allocate resources during the second quarter of fiscal 2021. The Company revised its operating segments accordingly effective in the second quarter of fiscal 2021, resulting in a change to the Company’s reportable segments into RGP and Other Segments. All of the employee termination and facility exit costs associated with the Company’s restructuring initiatives are within its RGP segment, and are recorded in selling, general and administrative expenses in the Company’s Consolidated Statement of Operations. See further discussion about the Company’s segment position in Note 12 – Segment Information. Restructuring costs for the three and six months ended November 28, 2020 and November 23, 2019 were as follows (in thousands):
|  | Three Months Ended |  | Six Months Ended
|  | November 28, |  | November 23, |  | November 28, |  | November 23,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Employee termination costs |  | $ | 5,455 |  | $ | - |  | $ | 6,393 |  | $ | -
Real estate exit costs |  |  | 1,082 |  |  | - |  |  | 1,104 |  |  | -
Other costs |  |  | 238 |  |  | - |  |  | 294 |  |  | -
Total restructuring costs |  | $ | 6,775 |  | $ | - |  | $ | 7,791 |  | $ | -
The following table summarizes the employee termination activity under both the North America and APAC Plan and the European Plan for the year ended May 30, 2020 and the six months ended November 28, 2020 (in thousands):
Liability balance at May 25, 2019 |  | $ | -
Increase in liability (restructuring costs) |  |  | 3,927
Reduction in liability (payments and others) |  |  | (2,053)
Liability balance at May 30, 2020 |  |  | 1,874
Increase in liability (restructuring costs) |  |  | 6,393
Reduction in liability (payments and others) |  |  | (2,965)
Liability balance at November 28, 2020 |  | $ | 5,302
Under the North America and APAC Plan, cumulative restructuring costs incurred as of November 28, 2020 totaled $6.8 million. This consisted of $5.0 million in employee termination costs and $1.8 million of other costs primarily related to exiting the facilities, including $1.3 million in non-cash impairment of operating right-of-use assets and $0.5 million in loss on disposal of fixed assets. The Company has substantially completed the planned employee headcount reduction under the North America and APAC Plan, and expects the remaining liability of $1.1 million as of November 28, 2020 to be paid out prior to the end of calendar 2021. Under the European Plan, cumulative restructuring costs incurred as of November 28, 2020 totaled $6.0 million, including $5.3 million in employee termination costs and $0.7 million of other costs primarily related to exiting the facilities. The Company has substantially completed the consultation and negotiation with impacted employees under the European Plan as of November 28, 2020. The Company had $4.2 million in employee termination liability as of November 28, 2020, and expects to incur an additional $0.1 million of employee termination costs in connection with the reduction in force in Europe during the remainder of fiscal 2021. The Company expects the remaining employee termination costs under the European Plan to be paid out prior to the end of calendar 2021.

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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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