Quarterly report pursuant to Section 13 or 15(d)

Restructuring

v3.20.2
Restructuring
9 Months Ended
Sep. 26, 2020
Restructuring and Related Activities [Abstract]  
Restructuring
9. Restructuring

Canada Restructuring

During 2018, the Company initiated plans to restructure the operations of the Canada segment. The restructuring seeks to streamline operations in the greater Toronto area by consolidating facilities, exiting certain lines of business, and rationalizing stock keeping units (“SKUs”). The intended result of the Canada restructuring will be a more streamlined and scalable operation focused on delivering optimal service and a broad offering of products across the Company's core categories. The Company expects to incur increased restructuring related charges and capital expenditures in our Canada segment over the next year as plans are finalized and implemented. The following is a summary of the charges incurred:
Thirteen Weeks Ended
September 26, 2020
Thirteen Weeks Ended
September 28, 2019
Thirty-nine Weeks Ended
September 26, 2020
Thirty-nine Weeks Ended
September 28, 2019
Facility consolidation (1)
   Labor expense (income) $ 19  $ 451  $ 396  $ 962 
   Inventory valuation adjustments 47  446  47  446 
   Consulting and legal fees 63  57  114  173 
   Other expense 51  541  713  1,037 
Rent and related charges 434  85  1,523  265 
Severance 37  —  569  — 
Exit of certain lines of business (2)
   Inventory valuation adjustments —  285  —  294 
   Gain on disposal of assets —  (61) —  (458)
   Severance —  —  —  — 
Other expense —  70  —  392 
Total $ 651  $ 1,874  $ 3,362  $ 3,111 

(1)Facility consolidation includes labor expense related to organizing inventory and equipment in preparation for the facility consolidation, consulting and legal fees related to the project, and other expenses. These expenses were included in SG&A on the Condensed Consolidated Statement of Comprehensive Loss.
(2)As part of the restructuring, the Company is exiting a manufacturing business line. Related charges included gains and losses on disposals of assets, and other expenses, which were included other income and expense, and SG&A on the Condensed Consolidated Statement of Comprehensive Loss, respectively.

The following represents the roll forward of Canada restructuring reserves for the current period:
Balance at December 28, 2019 Impact to Earnings Cash Paid Balance at September 26, 2020
Severance and related $ 1,121  569  (680) $ 1,010 
United States Restructuring

During fiscal 2019, the Company began implementing a plan to restructure the management and operations within the United States to achieve synergies and cost savings associated with the Company's acquisition activities. This restructuring includes management realignment, integration of sales and operating functions, and strategic review of the Company's product offerings. This plan was finalized during the fourth quarter of fiscal 2019. The Company expects to incur restructuring charges in the Fastening, Hardware, and Personal Protective Solutions segment and in the Consumer Connected Solutions segment during fiscal 2020 as the plans are implemented. Charges incurred include:
Thirteen Weeks Ended
September 26, 2020
Thirteen Weeks Ended
September 28, 2019
Thirty-nine Weeks Ended
September 26, 2020
Thirty-nine Weeks Ended
September 28, 2019
   Inventory valuation adjustments $ 1,568  $ —  $ 1,568  $ — 
   Severance 237  —  1,117  $ — 
Other 382  —  382  — 
Total $ 2,187  $ —  $ 3,067  $ — 


The following represents the roll forward of United States restructuring reserves for the current period:
Balance at December 28, 2019 Impact to Earnings Cash Paid Balance at September 26, 2020
Severance and related $ 3,286  1,117  (3,224) $ 1,179